If an inefficient public monopoly cannot provide a service at a price that sufficient numbers of people are willing to pay it:
A)can remain in operation by covering its losses with revenue from taxes.
B)must shut down and leave the industry in the long run.
C)should expand operations until demand is satisfied.
D)will seek out more efficiencies.

Question

Quizplus · Accepted Answer

An inefficient public monopoly can continue to operate despite not being able to provide a service at a price people are willing to pay by using tax revenue to cover its losses. This is because public monopolies often provide essential services and are supported by government funding.

If an Inefficient Public Monopoly Cannot Provide a Service at a Price