When the government sells something it produces,
A)revenue received must be greater than cost to justify government production
B)revenue received must equal cost because government is a nonprofit organization
C)the price does not always reflect the cost of producing the good
D)the price charged is an accurate measure of the benefits generated
E)it prices the good the same way a natural monopolist would

Question

Quizplus · Accepted Answer

The price set by the government for goods it produces does not always reflect the cost of production, as government pricing can be influenced by policy objectives, subsidies, or public welfare considerations rather than purely cost-based pricing.

When the Government Sells Something It Produces