Question

When attempting price regulation, a government faces what problem(s)?

Question 20 options:

	A) uncooperative firms
	B) limited information
	C) bribes
	D) All of the above.

The loss associated with the fact that at the profit-maximizing quantity consumers value the goods more than it cost to produce them is called

Question 14 options:

	A) comparative loss.
	B) deadweight loss.
	C) Consumer Value Loss.
	D) Lerner Loss.

Answer 1

Answer : 1) The answer is option D.

In case of price regulation the government face some problems. Like limited information, bribes. In case of price regulation to minimize loss the firms may not share whole information to government. This means that in case of price regulation the firms may not cooperate with government. So, as options A, B and C are correct hence option D is the answer.

2) The answer is option B.

The deadweight loss occur if consumers are ready to pay more for last unit than it's production cost. Therefore, option B is correct.