The key issue in determining the efficiency of public versus private ownership of a monopoly is
A)the tendency for efficient management of publicly owned enterprises.
B)the inability of private monopolies to get rid of managers that are doing a bad job.
C)the propensity of private monopolies to generate excessive profits.
D)how ownership of the firm affects the cost of production.

Question

Quizplus · Accepted Answer

The key issue in determining the efficiency of public versus private ownership of a monopoly is how ownership affects the cost of production. Public ownership may result in lower costs due to a lack of profit motive, while private ownership may result in higher costs due to the need to generate profits. However, this also depends on factors such as efficient management, competition, and regulation.

The Key Issue in Determining the Efficiency of Public Versus