Which of the Following Is a Potential Result of a Price

question 94

Multiple Choice

Which of the following is a potential result of a price ceiling?

• A) excess supply
• B) long lines
• C) higher quality output
• D) higher marginal costs

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Definitions:

Average Total Costs

This term refers to the total costs (fixed plus variable) of production divided by the total quantity of output produced.

Marginal Costs

The cost incurred by producing one additional unit of a good or service, reflecting the change in total cost that comes from a change in quantity produced.

Marginal Cost

The financial increase associated with the generation of one more unit of a product or service.