Author Question: What is a price floor?[br][br][b][color=#347235]Question 2[/color][/b][br][br]Irrespective of the ... (Read 81 times)

erika

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What is a price floor?

Question 2

Irrespective of the market structure, a firm maximizes profit at the level of output where the price of its product equals its marginal cost.
 a. True
  b. False
  Indicate whether the statement is true or false



mjenn52

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Answer to Question 1

A legislation fixing the minimum price of a commodity above the market-clearing or the equilibrium price is called a price floor.

Answer to Question 2

False



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