What is the key issue in determining the efficiency of public versus private ownership of a monopoly
A)the tendency for efficient management of publicly owned enterprises
B)the inability of private monopolies to get rid of ineffective managers
C)the propensity of private monopolies to generate excessive profits
D)how ownership of the firm affects the cost of production

Question

Quizplus · Accepted Answer

The key issue in determining the efficiency of public versus private ownership of a monopoly is how ownership of the firm affects the cost of production. Public ownership may lead to inefficiencies due to politics and bureaucracy. Private ownership may lead to higher prices and profits due to lack of competition. The cost of production is crucial in determining the efficiency of the monopoly, as it affects the price and quality of goods and services provided.

What Is the Key Issue in Determining the Efficiency of Public