According to William Niskanen's model of bureaucracy, Congress tends to approve a bureau's budget at a level where
a. the marginal value of the last unit of the bureau's output is greater than the marginal cost.
b. the marginal cost of the last unit of the bureau's output is greater than the marginal value.
c. the marginal value of the last unit of the bureau's output equals the marginal cost.
d. the marginal cost of the last unit of the bureau's output is zero.
b. the marginal cost of the last unit of the bureau's output is greater than the marginal value.
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The marginal cost of an activity ________ as you do more of it
A) increases B) decreases C) doesn't change D) changes only if the marginal benefit of the activity does not change E) changes only if the marginal benefit of the activity changes
As shown in Exhibit 5-9, assuming goods X and Y are substitutes, an increase in the price of Y, other factors held constant, could move the equilibrium from point E to point:
a. A. b. B. c. C. d. D.