Public choice analysis
a. assumes individuals in the public sector act in their own self-interests.
b. assumes individuals seek to serve the public interest rather than their own personal interests.
c. is the study of decision making in the formation and operation of private organizations.
d. assumes the government is a corrective device that takes the necessary action to offset economic inefficiency arising from market failure.
A
You might also like to view...
If an average cost pricing rule is imposed on the firm in the figure above, the consumer surplus will be
A) zero. B) $450. C) $400. D) $200.
Free entry means that
a. the government pays any entry costs for individual firms. b. government-funded research lowers the costs of patents and other barriers to entry. c. a firm's marginal cost is zero. d. no legal barriers prevent a firm from entering an industry.