Quizlet Price Floor

They don t face incentives to cut costs by using more efficient production methods because the high price offers them protection from lower cost competitors.

Quizlet price floor.

Productive inefficiency the high price allows inefficient firms with high costs of production to stay in buisness. Price floors are also used often in agriculture to try to protect farmers. Learn vocabulary terms and more with flashcards games and other study tools. Like price ceiling price floor is also a measure of price control imposed by the government.

It is legal minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price. Final exam ch. Binding price floors encourage the formation of a black market. Which of the following is an accurate statement about the consequence of a binding price floor.

The most common price floor is the minimum wage the minimum price that can be payed for labor. But this is a control or limit on how low a price can be charged for any commodity. Learn price floor with free interactive flashcards. Price floors are intended to help certain people but they have side effects that may harm others in predictable ways.

A price floor is the lowest legal price that can be paid in markets for goods and services labor or financial capital. Price floors are used by the government to prevent prices from being too low. Start studying price floors and price ceilings. Price floors and price ceilings.

Learn vocabulary terms and more with flashcards games and other study tools. The federal minimum wage at the. Consequences of price floors. Which of the following is a likely result of a price floor imposed on providers of a particular service.

Start studying economics 4. Perhaps the best known example of a price floor is the minimum wage which is based on the normative view that someone working full time ought to be able to afford a basic standard of living. Choose from 500 different sets of price floor flashcards on quizlet.