What Is the Underlying Concept of Privatization

question 30

Multiple Choice

What is the underlying concept of privatization?

• A) The government is too small to effectively and efficiently provide citizens with services.
• B) Private companies adapt and compete against each other to provide better services at a lower cost.
• C) Government-provided services hurt the economy due to market manipulation.
• D) The services provided by the government are the result of private research and development.

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Definitions:

Inverse Demand Function

Represents the relationship between the price of a good and the quantity demanded, showing how price must adjust to maintain equilibrium between supply and demand.

Marginal Costs

The expenditure involved in manufacturing one more unit of a product or service.

Major League Baseball

A professional baseball organization that is the oldest of the four major professional sports leagues in the United States and Canada.

Ticket Sales

The process and revenue generated from selling tickets for events such as movies, concerts, sports, and other performances.