In the private sector where firms compete for profit, if a firm is inefficient, ________. In the public sector, if a government bureau is producing a necessary service and is doing so inefficiently, ________.

Question

Quizplus · Accepted Answer

In the private sector, inefficient firms are often outcompeted and may go out of business due to market forces. In the public sector, inefficiency does not typically result in being driven out of business because public entities do not operate under the same market pressures and are often monopolies in their service provision.

In the Private Sector Where Firms Compete for Profit, If