Price cap regulation is regulation that
A) is a marginal cost pricing rule.
B) is an average cost pricing rule.
C) imposes a price ceiling on the regulated firm.
D) has the same incentive effects as does rate of return regulation.
E) is the same as allowing the firm to operate as if it was totally unregulated.
C
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In the market for labor:
A. firms create the supply. B. the price in the market is the interest rate. C. individuals are the sellers of the good. D. there is never disequilibrium.
Ava states, "If raising the minimum wage to $10 an hour is good, like Senator Largess suggests, then raising it to $20 an hour would be twice as good." Is Ava correct? Why or why not?
Use the figure below to answer the following question.
What is the amount of producer surplus after the government imposes the excise tax on the market?
A. $32 B. $7 C. $9 D. $40
The basic liberal solution to welfare dependency is __________.
Fill in the blank(s) with the appropriate word(s).