A price ceiling
A) is an illegal price.
B) is the price that exists in a black market.
C) is the maximum price that can legally be charged.
D) Both answers A and B are correct.
E) Both answers B and C are correct.
C
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The substitution effect in the labor supply decision refers to
a. substituting leisure for work as the wage rate rises b. substituting market work for nonmarket work as the wage rate falls c. working more hours as the wage rate falls d. working fewer hours as the wage rate rises e. substituting market work for leisure or nonmarket work as the wage rate rises
Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?
A. The MRTS is equal to the ratio of input prices, and the marginal product per dollar spent on all inputs is equal. B. The marginal products of all inputs are equal. C. The MRTS is equal to the ratio of input prices. D. The marginal product per dollar spent on all inputs is equal.