When Metropolitan Governments Were First Being Created,there Was an Assumption

question 16

Multiple Choice

When metropolitan governments were first being created,there was an assumption that they would

• A)reduce the amount of crimes committed in a large city.
• B)result in more tax revenue per capita for the local governments involved.
• C)eliminate the need for a sales or income tax.
• D)be cheaper and more efficient to provide services from a large,centralized bureaucracy than from several competing jurisdictions.

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Definitions:

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues; represents the extra amount over the payment needed to keep a resource in its current use.

P = ATC

An equation indicating the price level (P) at which the average total cost (ATC) of production is exactly met, often representing a break-even point for firms in competitive markets.

Pure Monopolist

A single seller in a market with no close substitutes for the product, giving the seller significant control over prices and output levels.

Unregulated Monopolist

A single seller in a market without regulatory oversight, potentially leading to high prices and reduced consumer welfare.