Define price floor
Price floor: Price floor refers to the lowest amount price fixed by the government over the market determined price and hence the producers of the necessary items such as wheat, rice and so on might not experience losses.
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A fundamental principle of finance is that the value of any of investment is: (w) the discounted present value of all future net cash flows expected by the investment. (x) negatively related to the future net cash flows generated from the investment. (y) the sum of al
A firm along with important market power which builds an additional plant to increase excess capacity may be trying to as: (w) ignore a depletion of inventory. (x) deter entry from potential competitors. (y) increase demand and thus raise price and pr
The difference among pure competition and monopolistic competition is which: (w) monopolistic competitors generate more profit in the long run. (x) monopolistic competitors always ignore short term losses. (y) long run entry and exit is probable in pu
Along with freedom of entry in a monopolistically competitive market, in long run equilibrium is reached along with firms: (w) earning zero economic profit. (x) producing where price equals marginal cost. (y) producing their most efficient output. (z)
A firm’s capability to alter the price of its output due to inadequate competition or a lack of perfect substitutes for its products is an illustration of: (i) adverse selection. (ii) simple game theory. (iii) X-inefficiency. (iv) strategic behavior. (v) market
Price Rigidity: The other significant feature of oligopoly is price rigidity. Price is rigid or sticky at the prevailing level due to the fear of reaction from the rival firms. When an oligo
When the annual interest rate is 12 percent and a rental house can be expected to rent perpetually for $1,000 monthly, rough computation suggests the house contain a present value of: (1) $240,000. (2) $144,000. (3) $100,000. (4) $72,000. (5) $12,000.
Can someone help me in finding out the right answer from the given options. All the profit maximizing organizations employ labor up to the point where: (w) MR MC is maximized. (x) VMP = MFC. (y) VMP = MRP. (z) MRP = MFC.
Technological advance in producing both capital goods and consumer goods is illustrated by the shift of the production possibilities curve from AB to: 1) CD. 2) EB. 3) AF. 4) GH. Discover Q & A Leading Solution Library Avail More Than 1460142 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1928207 Asked 3,689 Active Tutors 1460142 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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