A Price Cap Is a Price ________

question 102

Multiple Choice

A price cap is a price ________.A price cap might be a more effective way of regulating monopoly than rate of return regulation because under rate of return regulation,________.

• A)ceiling;a firm incurs an economic loss
• B)floor;price is set equal to marginal cost
• C)ceiling;the firm's managers have an incentive to inflate costs
• D)floor;the firm's managers have an incentive to purchase more than the efficient quantity of capital
• E)floor;the firm's managers have an incentive to inflate costs

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Definitions:

Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development that describes how children's intellectual abilities evolve as they grow.

Moral Realism

The philosophical viewpoint asserting that ethical statements refer to objective features of the world, which are independent of human opinion.

Moral Development

The process by which individuals learn to distinguish right from wrong, making ethical decisions and understanding societal norms.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child psychology, especially his theory of cognitive development that describes how children develop intellectual abilities.