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
C
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The most recent data indicates households in the top fifth of the income distribution earn as much income as the bottom four fifths combined
a. True b. False
A recent study on enrollment at a liberal arts college concluded that demand elasticity is 0.91 . The administration is considering a tuition increase to help balance the budget. The revenue-maximizing decision is to
a. decrease tuition, which should boost enrollment enough to balance the budget. b. decrease tuition, which would bring in more revenue. c. leave tuition as is-an increase would not help balance the budget. d. increase tuition, which would bring in more revenue.