Public bureaucracies:
A) typically lead to the low-cost outcome.
B) are typically just as efficient as private corporations.
C) typically have less incentive to minimize costs because there is no profit incentive.
D) still typically minimize costs because they are paid higher wages.

Question

Quizplus · Accepted Answer

Public bureaucracies do not have the same profit motive as private corporations, so they have less incentive to minimize costs. Their funding is often from tax dollars which can sometimes result in inefficiencies and waste. Higher wages for public bureaucrats may be true, but this may not necessarily translate to cost minimization since many factors contribute to costs in a bureaucratic system.

Public Bureaucracies