Asked by
Revital Bitton
on Dec 12, 2024
Verified
The incentive for managers of a government-operated firm (for example, a state university or the U.S. Post Office) to operate efficiently will be
A) low because all government workers are lazy.
B) low because there are no residual claimants to monitor and institute cost-reducing measures.
C) high because government employees and officials will be less concerned with personal gain.
D) high because voters can easily detect those who are to blame for inefficiencies and replace them.
Government-operated Firm
is a business entity controlled or owned by the government to provide goods or services to the public.
Residual Claimants
Individuals or entities that have a claim on the remaining assets of a company after all liabilities have been satisfied, typically the shareholders.
State University
A publicly funded university that is primarily supported by a state government.
- Analyze the obstacles and deficits in controlling monopolies and natural monopolies.
- Explain the incentives and disincentives for firms and regulators within monopolistic and oligopolistic markets.
Verified Answer
JS
Learning Objectives
- Analyze the obstacles and deficits in controlling monopolies and natural monopolies.
- Explain the incentives and disincentives for firms and regulators within monopolistic and oligopolistic markets.