Managerial Economics 2nd Edition by William Boyes

Exercise 20

"Government operations are often described as inefficient. In fact, they operate exactly as we would expect given their incentives." What does this mean? The example used is the DMV-a monopoly that does not care about the customer. Is this an appropriate analogy? Would a monopoly care about its customers? Can you to draw an analogy between the firm and the DMV with respect to a firm's relationships with employees and the assets it owns?