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A government-owned and -operated monopoly can be less efficient than a privately owned monopoly because the government monopoly is not allowed to lower its costs.
A government-owned and -operated monopoly can be less efficient than a privately owned monopoly because
the government monopoly is not allowed to lower its costs.
B.government regulation turns a monopoly into a natural monopoly, which cannot earn a profit by producing the socially optimal output.
C.the government monopoly cannot control the quantity it produces.
D.the government monopoly lacks a profit motive and therefore doesn't have the right incentives to minimize costs.
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