Which of the following is not a potential result of a price floor?
A) excess supply
B) price greater than free-market equilibrium price
C) Lower quality inputs are used, which increases marginal cost.
D) all of the above
C
You might also like to view...
The creation of new property forms (such as privatizing a public beach) is one answer to __________ because it would reduce _________
a. government failure; market failure b. market failure; government failure c. the creation of third parties; public choice d. dealing with externalities; the number of third parties e. the inefficiencies of the market; special interests
Before the breakup of AT&T several years ago, profits on long-distance calls offset losses on basic residential service. This practice is known as
a. abuse of monopolistic power. b. cream skimming. c. cross-subsidization. d. the Ramsey rule.