Thursday, July 21, 2011

When the government sells something it produces,

ECONOMICS

Multiple Choice

When the government sells something it produces,

a.revenue received must be greater than cost to justify government production

b.revenue received must equal cost because government is a nonprofit organization

c.the price does not always reflect the cost of producing the good

d.the price charged is an accurate measure of the benefits generated

e.it prices the good the same way a natural monopolist would

Click here for the SOLUTION

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