A price ceiling is a limit on
Athe highest price charged
Bthe lowest price allowed
Cthe output of a firm
Dthe number of buyers
Answer & Solution
Correct answer: A. the highest price charged
A ceiling is a legal maximum, set to stop a price from rising beyond a stated level.
Related questions
Neoclassical theory defines profit as revenue left after subtractingA firm sells 100 units at a price of Rs 12 with average cost Rs 9. Its economic profit isLong run economic profit depends on the prevalence ofUnlike competitive firms, monopolists areCompetition laws were created to stop powerful firms fromMarket equilibrium is the situation in which supply and demand forces areA price ceiling set by a manufacturer for its distributors is calledWhy do governments usually impose price ceilings?