What is the difference between a public franchise and a public enterprise?
A) Both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the United States while "public enterprise" is more commonly used in European countries.
B) A public franchise grants a firm the right to be the sole legal provider of a good or service. A public enterprise refers to a service that is provided directly to consumers through the government.
C) A public enterprise is owned by the public through its holdings of shares of stock in the enterprise. A public franchise is a firm owned by the government.
D) A public enterprise grants a firm the right to be the sole legal provider of a good or service. A public franchise refers to a service that is provided directly to consumers through the government.
B
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Efficiency wages do not lead to:
A. structural unemployment. B. wages above their equilibrium level. C. lower firm profits. D. increased worker productivity.
If the marginal cost of producing a television is constant at $200, then a firm should produce this item
A) as long as the marginal benefit it receives is just equal to or greater than $200. B) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin. C) as long as its marginal cost does not rise. D) until the marginal benefit it receives reaches zero.