A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2020 · Q141 Mark
Which argument has often been used to justify the privatisation of state enterprises?
APrivate firms can produce the same outputs using fewer inputs.
BPrivate firms try to earn large profits.
CState enterprises are always monopolies which exploit consumers.
DState enterprises cannot operate without government subsidies.
✓ Correct answer
A: Private firms can produce the same outputs using fewer inputs.
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