Multiple Choice
Figure 7-3
-Government provides many goods and services to the public because they are not provided by free markets.Some economists believe bureaucrats who manage the programs have no interest in maximizing net benefits (profits) but instead maximize the size of a program constrained only by the need to have total benefits exceed total costs.Figure 7-3 shows total benefits and cost curves for a program.What point is the efficient point, and what point will the bureaucrat choose?
A) A and B, respectively
B) B and D, respectively
C) D and C, respectively
D) D and A, respectively
Correct Answer:
Verified
Correct Answer:
Verified
Q113: Differentiate between the short run and the
Q114: Production indifference curves bow inward toward the
Q115: Input choices in the present are often
Q116: Production indifference curves show the combination of
Q117: Higher production indifference curves correspond to larger
Q119: Total variable costs will initially increase and
Q120: Figure 7-17 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 7-17
Q121: Table 7-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Table 7-4
Q122: If significant economies of scale are present,
Q123: Production costs for a given output will