What were the troubles of government enterprises?

Underperformance

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Complacency

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Lack of incentive

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Regulatory pricing

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Solution

The correct options are
A
Underperformance

B
Complacency

C
Lack of incentive

Public sector enterprises face complacency, are often underperforming and have an incentive problem, leading to their overall inefficiency.

The regulated pricing of these enterprises is, however, a positive for running these enterprises.

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