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?
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AThe revenue gained from the sale of public-sector companies is likely to be negligible compared to the cost of maintaining them.
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BBy buying a public-sector company and then closing the company and selling its assets, a buyer can often make a profit.
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CThe services provided by many public-sector companies must be made available to citizens, even when a price that covers costs cannot be charged.
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DSome unprofitable private-sector companies have become profitable after being taken over by the government to prevent their closing.
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EThe costs of environmental protection, contributions to social programs, and job-safety measures are the same in the public and private sectors.
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