Author Question: Assume that the market clearing price for a shirt is 20, but that the maximum price that can be ... (Read 75 times)

javeds · **on:** Jun 29, 2018

Assume that the market clearing price for a shirt is 20, but that the maximum price that can be charged is 15. This is an example of

A) a price control that will lead to a surplus of shirts on the market.
B) a price floor that will lead to a shortage of shirts on the market.
C) markets failing to ration a fixed quantity of a good.
D) a price ceiling that will likely lead to a shortage of shirts on the market.

Question 2

The industry concentration ratio measures the

A) value of the assets owned by the largest corporations in the market.
B) percentage of industry sales accounted for by the top four or eight firms.
C) difference between price and marginal cost for the largest firms in the industry.
D) degree of product differentiation in the market.