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

Question

Quizplus · Accepted Answer

An inefficient public monopoly can continue operating by using tax revenue to cover its losses, as it is often supported by the government to provide essential services regardless of profitability.

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