BUS 207 Chapter Notes - Chapter 6: Form 10-Q, Market Clearing, Price Floor

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 207
• Professor: Karen Ruckman

Document Summary

Perfect competition example questions: suppose the cost function for a firm is given by c(q) = 100 + q2. One example is called a price floor , where the government will not allow a price to fall to its market level because of a belief or political pressure that the market determined price is too low. Say the industry demand for labour is q = 7. 5 0. 5p and industry supply of labour is q = p 5 where p is the average wage per hour and q is millions of people employed.