A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2020 · Q161 Mark
A government decides to replace a private company with its own company to collect household waste. Why could such action be justified?
ABecause waste collection is a public good.
BCosts of waste collection are bound to be lower if paid out of local taxes.
CPrivate companies are always less efficient than government companies.
DPrivate companies might put profits before customer needs.
✓ Correct answer
D: Private companies might put profits before customer needs.
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