Iron Triangles Are

question 156

Multiple Choice

Iron triangles are

• A) alliances among a private interest group, a bureaucratic agency, and a congressional committee or subcommittee.
• B) arrangements among the Defense Department, an American embassy, and a foreign government.
• C) agreements among three or more states to share the costs of a project that impacts on all three states.
• D) negotiations involving the federal government, the states, and local governments.
• E) alliances between interest groups, legislators, and the president.

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Definitions:

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, equating to the opportunity cost of the resources employed.

Normal Profit

The minimum level of profit necessary for a company to remain competitive in the market, often considered the break-even point.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one more unit of a good or service. It is a critical concept in economics for decision-making regarding production levels.

Purely Competitive Market

A market structure characterized by many buyers and sellers, all of whom are selling a homogeneous product, with no single buyer or seller able to influence the market price.