Several years ago, the government of the small nation of Allegro owned the nation's telephone company and landlines. This relatively poor government relied on taxes to develop this industry and provide service to its citizens. If the government desired to rapidly improve people's access to phone service, its best course of action would involve selling the telephone company to private investors.

Question

Quizplus · Accepted Answer

By selling the telephone company to private investors, the government can inject more capital into the industry and allow market competition to improve service quality and coverage. Private investors are also motivated by profit and will strive to expand their customer base, which further boosts access to phone service.

Several Years Ago, the Government of the Small Nation of Allegro