Public-sector (government-owned) companies are often unprofitable and a drain on the taxpayer. Such enterprises should be sold to the private sector, where competition will force them either to be efficient and profitable or else to close. Which of the following, if true, identifies a flaw in the policy proposed above?
A: By buying a public-sector company and then closing the company and selling its assets, a buyer can often make a profit.
B: The costs of environmental protection, contributions to social programs, and job-safety measures are the same in the public and private sectors.
C: The services provided by many public-sector companies must be made available to citizens, even when a price that covers costs cannot be charged.
D: Some unprofitable private-sector companies have become profitable after being taken over by the government to prevent their closing.
Choose A, B, C or D as your solution.
C