The Size of a Deadweight Loss in a Market Is

question 212

Multiple Choice

The size of a deadweight loss in a market is reduced by

• A)government legislating a ceiling price.
• B)government legislating a price floor.
• C)market price being close to marginal cost.
• D)creative destruction.

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Definitions:

Closed Businesses

Companies that have ceased operations permanently, often due to financial troubles, market competition, or other external factors.

Managing Finances

The practice of handling monetary resources efficiently, including budgeting, investing, and saving.

Adequate Cash Flow

The level of cash inflow that is sufficient to cover the outflow necessities for a business to operate smoothly and meet its financial obligations.

Home Based

Pertaining to businesses or activities that are operated out of a person's residence, rather than from an external office or commercial establishment.