A price cap regulation
A)is a price floor.
B)is a price ceiling.
C)is illegal.
D)delivers marginal cost pricing.
E)sets price equal to average variable cost.

Question

Quizplus · Accepted Answer

Price cap regulation is a type of government intervention in which a limit is placed on the maximum price that a firm can charge for its products or services. This maximum limit is known as a price ceiling. Therefore, option B is the correct answer.

A Price Cap Regulation