A price floor is
a. a legal minimum on the price at which a good can be sold.
b. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor.
c. a source of inefficiency in a market.
d. All of the above are correct.
d
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Referring to Figure 2.1,if you increase the production of farm goods, what other area is affected?
A) how much people can purchase B) the production of manufactured goods C) the wages earned by farm workers D) the price of produce
In which industry structure is advertising and sales promotion likely to be most important?
A) perfect competition B) monopoly C) monopolistic competition D) All of the above are equally reliant on effective advertising and promotion.