--%>

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.

   Related Questions in Microeconomics

  • Q : Giving wholesale price per dozen by

    When Rose Garden Wholesalers has a typical type cost structure of rose farms within this purely competitive industry, into the long run new competitors would most likely enter the market providing the wholesale price

  • Q : Question based on balance sheets Help

    Help me to solve this problem. Refer to the given balance sheets. If the reserve ratio is 25%, the maximum money-creating potential of the commercial banking system is: A) $36. B) $17. C) $48. D) $24.

    Q : Ratios of personal benefits in Welfare

    Welfare is explained as being received while: (w) the ratios of personal benefits received by government programs associate to taxes paid are greater than for the average citizen. (x) economic rents are earned by owners of inputs. (y) a productive inp

  • Q : Meaning of term competition in Economic

    Economists generally use the word “competition” to refer to: (w) negotiations among buyers and sellers. (x) a type of market structure in that competitors are price takers and, occasionally, to rivalrous processes among firms. (y) how pric

  • Q : Explain about federal income tax Can

    Can somebody help me to solve this query.. The federal income tax, wherein the rate rises as income increases, is taken as: (w) a progressive tax. (x) a regressive tax. (y) skewed towards the poor. (z) unfair to th

  • Q : Barriers to entry of dominated industry

    An industry dominated by small huge firms shielded through barriers to entry is: (1) a monopoly. (2) a vertically integrated industry. (3) an oligopolistic industry. (4) an aggregated industry. (5) a cartel. I need

  • Q : Causes of Increase in demand Describe

    Describe the causes of Increase in demand?Answer: 1) Increase in income of the consumer.2) Price of substitute goods increase.3)

  • Q : Exit from a competitive industry Exit

    Exit from a competitive industry will carry on till economic: (w) losses are driven to zero. (x) profits precisely offset accounting losses. (y) profit exceeds accounting profit. (z) resources have minimum incomes.

  • Q : Elastic industry What industry is

    What industry is perfectly elastic that is not agriculture?

  • Q : Price leadership models When all firms

    When all firms in an oligopolistic industry raise and lower prices together, in that case it is most consistent along with: (w) the kinked demand curve. (x) price leadership models. (y) the herd instincts of investors. (z) competitive theories of cart