Government operations are often described as inefficient. In fact, they operate exactly as we would expect given

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“Government operations are often described as inefficient. In fact, they operate exactly as we would expect given their incentives.” What does this mean? The example used is the DMV – a monopoly that does not care about the customer. Is this an appropriate analogy? Would a monopoly care about its customers? Can you to draw an analogy between the firm and the DMV with respect to a firm’s relationships with employees and the assets it owns?

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