A disadvantage of a government-owned monopoly is that the firm:
A) has access to subsidies.
B) will most likely produce the optimal amount.
C) will be well run.
D) has no profit motive and therefore may become inefficient.

Question

Quizplus · Accepted Answer

Government-owned monopolies may lack the profit motive that drives efficiency in private companies, leading to potential inefficiencies in their operations.

A Disadvantage of a Government-Owned Monopoly Is That the Firm