Private firms are likely to understate revenue and understate costs in order to minimize their tax liabilities.

Name: Private firms are likely to understate revenue and understate costs in order to minimize their tax liabilities.
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Private firms are likely to understate revenue to minimize their tax liabilities, but they would overstate costs for the same reason, not understate them. Overstating costs reduces taxable income, thereby reducing the tax liability.

Private Firms Are Likely to Understate Revenue and Understate Costs