If the equilibrium price of good X is $5 and a price ceiling is imposed at $4, the result will be a(n):

So long as a monopolist finds itself in the situation where price is greater than average fixed cost at the profit-maximizing (loss-minimizing) level of output, the firm should continue to operate to minimize its losses

Indicate whether the statement is true or false

A market failure occurs when

A) price equals marginal cost. B) there is a non-optimal allocation that leads to an inefficient market. C) deadweight loss is maximized. D) a firm shuts down.