When the Minimum Price That Can Be Legally Charged Is

question 275

Multiple Choice

When the minimum price that can be legally charged is above the market price, we say there is a price:

• A) support.
• B) stability.
• C) ceiling.
• D) floor.

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Definitions:

Selling Price

Selling price is the amount of money that a seller is willing to accept in exchange for a good or service it provides to buyers.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.

Social Cost

The cost to society as a whole due to an activity, including both direct costs incurred and indirect effects (such as environmental damage or health impacts).

Marginal Cost

Marginal Cost is the additional cost incurred from producing one more unit of a good or service, an important concept in economics for decision-making regarding production levels.