We know the goal of a budget-constrained public enterprise. Indicate

We know the goal of a budget-constrained public enterprise.

Indicate whether the statement is true or false

ANSWER

F Many possible goals might be pursued by a budget-constrained public enterprise, so for any one enterprise it is not easy to know its goal. It could try to control cost and pursue welfare through Ramsey pricing, or it could try to maximize revenue. The budget constraint is not a very confining limitation on its behavior.