Author Question: The price of a gallon of gasoline in Bonland is 3.20. However, just before the election, the ... (Read 38 times)

savannahhooper · **on:** Jun 29, 2018

The price of a gallon of gasoline in Bonland is 3.20. However, just before the election, the government decides to fix the price of gasoline at 2.80 per gallon. This is an example of a ________.

A) positive externality
B) negative externality
C) price floor
D) price ceiling

Question 2

What are the conditions that define a monopoly?

What will be an ideal response?

Leostella20 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

There is only one firm producing a good or service with no close substitutes for the good or service sold and there are barriers to entry that prevent competing firms from entering the market.