Private Firms and Public Bureaus Differ in the Sense That

question 128

Multiple Choice

Private firms and public bureaus differ in the sense that

• A)only private firms employ capital
• B)public bureaus usually show a profit
• C)some public bureaus are inefficient
• D)ownership of private firms is transferable
• E)ownership of public bureaus is transferable in the marketplace

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Definitions:

Average Total Costs

The cost of producing each unit, calculated by dividing the entire production cost by the total number of units made.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, or loan payments.