A price floor policy establishes a minimum price for a market, and the policy is said to be binding if the market equilibrium price is less than the floor price. What impact does a binding price floor have on the market outcome?
A. Shortage
B. Excess demand
C. Excess supply
D. No impact, and the market price and quantity equal their equilibrium values
C. Excess supply
Economics
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Long-run equilibrium for a perfectly competitive firm occurs when
a. P = MC = MR = ATC b. MC = MR = AFC = ATC c. MC = MR = P > ATC d. P > MC > MR > ATC e. TR > TC
Economics
Discouraged workers
A. are primarily manufacturing employees who have been displaced by machinery. B. are comprised mainly of the cyclically unemployed, laid off because of recession. C. are people who have stopped looking for work because they believe they will not be able to find employment. D. are those workers who leave regular employment and work in the underground economy. E. are temporarily between jobs.
Economics