How will a price ceiling affect producers?
a. Lower cost producers will be forced from the market.
b. Higher cost producers will receive a higher price for each unit they sell.
c. Lower cost producers will remain in the market, but will receive less for each unit.
d. Higher cost producers will receive a transfer of surplus from consumers.
c. Lower cost producers will remain in the market, but will receive less for each unit.
You might also like to view...
Refer to the table below. If the senior manager learns that either a Fair or Poor market will exist when the drug is introduced to the market, which drug should the senior manager pursue?
The senior manager of Rx Pharmaceuticals needs to decide which of three drugs the company should consider developing. The estimated profit for each of the drugs differs depending on the market conditions when the respective drugs are introduced to the market. The above table summarizes the estimated profit for each drug under each of the three market conditions; Good, Fair, and Poor.
A) Drug A
B) Drug B
C) Drug C
D) none of the drugs
The most reliable measure of market concentration is:
a. the Cost of Living index. b. the Herfindahl-Hirschman index. c. the Market index. d. the Market-Value weighted index. e. the Wholesale Price index.
Both Google and Facebook make their money by charging advertisers to run their ads, and the bigger an audience they have, the more they can charge.
Answer the following statement true (T) or false (F)
Americans love to eat peanut butter & jelly sandwiches. If the price of jelly increases (while other things remain constant), what effect will this have on the market for peanut butter?
a. price rises, quantity falls b. price falls, quantity rises c. both price and quantity fall d. both price and quantity rise e. price rises and quantity remains the same