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Government-imposed price floors may increase the price but

Government-imposed price floors may increase the price, but they also typically lead to:

1. persistent surpluses

2. disposal problems

3. unwanted and inefficient discounts

4. overinvestment in the industry

Can you explain how, and why is this overinvestment a bad thing?

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Business Economics: Government-imposed price floors may increase the price but

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Business Economics: Government-imposed price floors may increase the price but

Reference No:- TGS02427122

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