Assume that the world price of Commodity X is $9 per unit while its domestic price is $8, and the marginal cost of production is $6 per unit. If the government imposes a price ceiling of $7 on domestic output:
a. the import of Commodity X from the world market would stop.
b. the world price of Commodity X would decline.
c. a surplus of Commodity X would accumulate in the domestic market.
d. a shortage of Commodity X would be observed in the domestic market.
D
Economics
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The Robinson-Patman Act amended and further refined which of the following laws?
a. the Sherman Antitrust Act b. the Cellar-Kefauver Act c. the Clayton Act d. the FTC Act e. the Herfindahl-Hirschman Act
Economics
In the long run, any firm may enter or leave a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
Economics