price floor


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Price Floor

The lowest price for a good or service permitted by a government. A government may impose a price floor to protect a favored industry and/or to keep employees working at a reasonable wage. Price floors are particularly common in agriculture. Many economists believe setting price floors is economically inefficient and limits demand in the market, causing an oversupply of the controlled good or service.

price floor

the minimum PRICE that can be charged for a PRODUCT as determined by the government. Contrast PRICE CEILING. See PRICE CONTROLS, PRICE SUPPORT, MINIMUM WAGE RATE, COMMON AGRICULTURAL POLICY.
References in periodicals archive ?
There may be a temptation to dismiss this problem out of hand on grounds that the regulator can simply allow the incumbent provider to establish a price floor on the basis of the efficient-firm cost standard and thereby promote competitive parity with the entrant.
The UK pre-notified the Carbon Price Floor (CPF) compensation scheme to the Commission in September 2012 but consideration and approval of the case has been delayed due to the novelty of the case and internal resourcing issues within the Commission.
For example, exempting the entire iron and steel industry from the Carbon Price Floor would cost about pounds 14 million a year when it is introduced in 2013.
AT&T Megacom where CAP access is often used, the LEC would not be required to impute the switched access tariff rate at the HiCap end but instead the price floor would be comprised of the overall incremental cost for the LECs competing service plus the contribution from switched access at the terminating end.
The new carbon price floor will heavily tax all carbon emissions from fossil fuel power stations from 2013.
It should fly off the shelves then, except I reckon in the same way there is a price ceiling on property - each street has a maximum we will pay-there is a price floor on skin cream.
The letters signatories who own and operate coal, gas and renewable electricity generation believe putting a price on carbon emissions, through the UKs Carbon Price Floor, is a critical part of the UKs energy policy.
ONE of Teesside's biggest employers has met with senior ministers to lobby against the controversial carbon price floor (CPF).
A carbon price floor will effectively increase the amount of money electricity generators have to pay for their carbon emissions.
The price floor that they have set is so low as to be almost meaningless," he added.
1457 provision of the contract provision of the contract is not required additional information information is absent list of attached documents 1 request online quotes 2 floor 2016 2 calculation justification initial (maximum) contract price floor 2 2016 date and time of placing the notice (local time, an organization engaged in publishing) 10.