According to some economists, the private sector is more eﬃcient than the public sector mainly because

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The private sector has a clear test of performance, which is profit and loss. This means that private sector companies are motivated to cut costs, increase productivity, and innovate in order to increase profits. On the other hand, public sector entities do not have the same profit and loss incentives, and may not be as motivated to improve efficiency.

According to Some Economists, the Private Sector Is More Eﬃcient