ABSTRACT
This chapter evaluates the behavior of a multi-service bureau, specifically to determine whether its behavior is any different from the sum of the behavior of separate bureaus each supplying a single service. A multi-service bureau supplies a smaller output of a service for which the marginal costs increase more with output and a larger output of a service for which the marginal costs increase less than do separate bureaus supplying each service. Bureau is assumed to be a monopoly supplier of the several services, to face one or more passive sponsors from which it receives its total financing, and to pay competitive factor prices. A bureau that supplies two services faces two different budget-output functions, whether from one or more sponsors. There may be no relation between the sponsor's demand for the two services. This bureau also has two different minimum total cost functions, and there may also be no relation between the costs of supplying the two services.
