In Bargaining Between a Bureau and the Legislature Over a Budget,the

question 29

Multiple Choice

In bargaining between a bureau and the legislature over a budget,the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously.This gives the bureau the opportunity to _____.

• A)minimize their effort
• B)extract all the legislature's consumer surplus from the bureau's output
• C)maximize the bureau's profits
• D)maximize the budget's producer surplus by extracting from the legislature large rents