Which of the Following Explains Why Managers of Government Agencies

question 136

Multiple Choice

Which of the following explains why managers of government agencies have little incentive to achieve operational efficiency?

• A) Public-sector managers need not fear bankruptcy when operational efficiency is not achieved.
• B) Public-sector managers seldom receive personal benefits if they find ways to improve the efficiency of their operations.
• C) Public-sector agencies typically do not face competition.
• D) All of the above explain why government agencies have little incentive to be efficient.

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Definitions:

MR

Marginal Revenue refers to the increase in revenue that results from the sale of one additional unit of output.

Industry Entry

The process by which new competitors enter an existing market or industry.

Continue Operate

The decision for a business to keep running its operations despite facing challenges or not achieving expected results.

Loss

A decrease in money, resources, or value, often occurring when expenses exceed revenues in a business context or reflecting personal financial setbacks.