At the end of last year the broad cost leader chester had an elite product cat. use the inquirer's production analysis to find cat's production cost, (labor materials). exclude possible inventory carrying costs. assume period expenses and overhead total 1/2 of their production cost. what is the minimum price the product could have been sold for to cover the unit cost, period expenses, and overhead cost?

answer; /// egg production using the factory technique falls less than with the free range technique;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.