The Rationing Mechanisms That Develop Under Binding Price Ceilings Are

question 139

True/False

The rationing mechanisms that develop under binding price ceilings are usually inefficient.

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Definitions:

Monopolist

An entity that has exclusive control over the supply of a particular good or service, setting prices without facing competition.

Opportunity Cost

The cost of what you have to give up in order to choose something else.

Output

The sum of all goods or services created by an enterprise, industry, or the economy over a certain period.

Economic Profits

The profit or loss calculated by taking out both straightforward and assumed expenses from total income.