Asked by
Drameka Elder
on Nov 05, 2024
Verified
Refer to Figure 13.10. If the government imposed a ________ on this firm, the firm would sell to 2,500 subscribers but would require a subsidy of $1,250 to stay in business.
A) price floor of $12
B) price floor of $12.50
C) price ceiling of $12
D) price ceiling of $12.50
Price Floor
A legally established minimum price that can be charged for a good or service, typically above the equilibrium price, to prevent market prices from falling too low.
Subsidy
A financial grant or support extended by the government to individuals, businesses, or industries to encourage certain activities or lower their costs.
- Learn about the impact of administrative edicts such as price restrictions and safety nets on the economic performance and tactical decisions of corporations.
Verified Answer
DS
Learning Objectives
- Learn about the impact of administrative edicts such as price restrictions and safety nets on the economic performance and tactical decisions of corporations.