Private Firms and Public Bureaus Differ in the Sense That

question 139

Multiple Choice

Private firms and public bureaus differ in the sense that public bureaus

• A)sometimes have top-level managers chosen by shareholders
• B)sell most of their output on a per unit basis
• C)receive most of their revenues through a budget appropriation rather than through the sales of goods or services
• D)are sometimes inefficient
• E)hire consultants to solve difficult problems

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Definitions:

Expected Profit

The anticipated financial return from an investment or business activity, considering potential risks and earnings.

Optimal Quantity

The most favorable amount of goods or services, determined through analysis, to meet specific objectives like minimizing costs or maximizing profit.

Surplus Inventory

Inventory exceeding the current demand, leading to excess stock that may require special handling or discounting.

Salvaged

Items or materials recovered for use or sale after being damaged, rejected, or abandoned.