A Price Ceiling Is

question 63

Multiple Choice

A price ceiling is

• A)often imposed on markets in which "cutthroat competition" would prevail without a price ceiling.
• B)a legal maximum on the price at which a good can be sold.
• C)often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
• D)All of the above are correct.

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Definitions:

Cost Of Capital

The essential return rate an enterprise has to produce on its investment activities to sustain its market assessment and appeal to investors.

Cost Of Capital

The essential profit ratio a company is expected to reach in its investing endeavors to keep its marketplace value and attract financial backers.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Risk Level

The degree of uncertainty and/or potential financial loss inherent in an investment decision.