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Under Exclusive Contracting,the Incentive to Adopt Cost-Saving Innovations Is

Question 24

Multiple Choice

Under exclusive contracting,the incentive to adopt cost-saving innovations is


A) the same as for cost-plus regulation.
B) the same as for government-owned natural monopolies.
C) destroyed.
D) greater than under cost-plus regulation but still less than a private firm.
E) the same as for a private firm.

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