Which of the Following Is Not a Characteristic of a Market

question 6

Multiple Choice

Which of the following is not a characteristic of a market with a price floor?

• A)Quantity demanded exceeds quantity supplied
• B)Sellers offering discounts in disguised forms
• C)Problem of disposal created by excess supply
• D)Survival of less efficient businesses

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Definitions:

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and one has "broken even."

Capacity Strategies

Approaches adopted by businesses to match their operational capacity with demand levels in order to maximize efficiency and customer satisfaction.