​Price Gouging

question 10

Multiple Choice

​Price gouging

• A)​Outlaw trade at prices above a certain price level
• B)Outlaw trade at prices below a certain price level
• C)Is an act of charging a high price to take advantage of shortages created by natural disasters
• D)​None of the above

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Definitions:

ATC

An abbreviation for Average Total Cost, a financial metric calculated by dividing the total cost by the quantity of output produced.

MC

Often referred to as Marginal Cost, it is the increase in total cost that arises from an extra unit of production.

Inputs

Resources used in the production process to produce goods or services.

Production

The process of creating goods or services using inputs such as labor, materials, and technology.