Refer to the information provided in Figure 13.10 below to answer the question(s) that follow. Figure 13.10
-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

Question

Refer to the information provided in Figure 13.10 below to answer the question(s) that follow.  Figure 13.10
-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

Quizplus · Accepted Answer

A price ceiling of $12 would limit the price the firm can charge, leading to a situation where they would sell to 2,500 subscribers but would not cover their costs, thus requiring a subsidy to continue operating.

Refer to the Information Provided in Figure 13