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Price floor means a) Average revenue. b) Price limit for a product. c) Price which is lower than the equilibrium price. d) Market price. |
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Answer» Answer: c) PRICE which is LOWER than the equilibrium price. Explanation: A price FLOOR is a GOVERNMENT- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service. A price floor must be higher than the equilibrium price in order to be EFFECTIVE. |
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