What is the problem with government-run monopolies like Social Security and Medicare? Multiple Choice There are no market forces that compel them to provide good customer service since government bureaucracies are protected from competitive market forces. Since they do not follow the concept of MC=MR, there is no motivation to bring costs under control since there is an endless flow of taxpayer money coming into the programs. The government regulators often make their choices based on political considerations and not on real-world market conditions. All of the statements listed above are essentially correct and have merit.

What is the problem with government-run monopolies like Social Security and Medicare? Multiple Choice There are no market forces that compel them to provide good customer service since government bureaucracies are protected from competitive market forces. Since they do not follow the concept of MC=MR, there is no motivation to bring costs under control since there is an endless flow of taxpayer money coming into the programs. The government regulators often make their choices based on political considerations and not on real-world market conditions. All of the statements listed above are essentially correct and have merit.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section14.5: Public Policy Toward Monopolies

Problem 5QQ

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Similar questions

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