Public choice theorists believe politicians make choices when the expected marginal benefits will ______ their expected marginal costs.
a. exceed
b. be lower than
c. equal
d. increase
a. exceed
You might also like to view...
Suppose most consumers who eat hotdogs also use mustard, a complementary good. If the price of hotdogs rises, which is most likely to happen?
A) The demand curve for mustard will shift right. B) The demand curve for hotdogs will shift right. C) The demand curve for mustard will shift left. D) The demand for hotdogs will fall.
Why would a firm in a monopolistically competitive industry advertise?
What will be an ideal response?
Suppose a $1 tax is placed on a good. The more elastic the supply of the good, the
A) larger the increase in the after-tax price. B) smaller the decrease in the quantity sold. C) less of the tax will be paid by the buyers. D) more of the tax will be paid by the sellers.
Refer to Figure 15-3. Suppose the monopolist represented in the diagram above produces positive output. What is the profit-maximizing/loss-minimizing output level?
A) 630 units B) 800 units C) 850 units D) 880 units