Question

When setting prices, the price floor is usually defined by ______ of producing and marketing the product.A. The total costsB. The total fixed costsC. The average variable costsD. The average total costsE. None of the above.

Answer 1

Answer: Option E - None of the above

Step-by-step explanation:

Price floor is a situation whereby, the price to be charged falls above or below the market's force equilibrium price of supply and demand. This can be government or group imposed price, price floor has to be above the equilibrium price for it to be effective.