Farm price support programs most often take the form of price
A. Ceilings, which cause shortages.
B. Floors, which cause shortages.
C. Floors, which cause surpluses.
D. Ceilings, which cause surpluses.
Answer: C
You might also like to view...
Refer to the above figure. If an individual firm wants to maximize economic profits, it should
A) charge $5 for its product. B) charge more than $5 for its product since increasing the price will increase revenues. C) charge less than $5 for its product since a lower price will attract more customers. D) withdraw its product from the market forcing the market price up.
Suppose that your firms marginal cost of producing a pencil is 5 cents and the average cost of producing a pencil is 3 cents. if your firm is interested in minimizing average total cost, what should your firm do?
A type of corporation that combines the capital raising options and limited liability of a corporation with the federal taxation advantages of a partnership
What will be an ideal response?
Where does a monopolistic competitive firm determine its quantity?
a. Price equals marginal revenue b. Price equals marginal cost c. Marginal revenue equals marginal cost d. Marginal revenue equals average total cost