Price cap regulation
A) does not provide incentives to firms to minimize their costs because firms cannot change prices.
B) sets the maximum price these firms can charge.
C) gives firms the incentive to exaggerate their costs.
D) Both answers A and C are correct.
E) Both answers A and B are correct.
B
Economics
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If your risk of losing your house to catastrophe is 25%, how much would fair insurance cost if your home were worth $1,000,000?
A) $250,000 B) $750,000 C) $1,000,000 D) Unable to determine with the information given.
Economics
Which of the following is true of a demand curve? a. It must remain stable over time
b. It can shift either rightward or leftward. c. It is possible to move along the curve, but the demand curve will not shift. d. None of the above are true.
Economics