Privatization promotes competition and efficiency in telecom

Steps:

• Privatization ends government monopoly, introducing market competition.
• Competition expands consumer options and service variety.
• Private firms prioritize cost-cutting and output efficiency for profits.
• Industry growth from privatization often boosts employment and innovation, but new products require separate R&D incentives.

Why C is correct:

• Privatization emphasizes short-term efficiency gains over long-term R&D investment, as per public choice theory, making new product development less directly tied to ownership change.

Why the others are wrong:

• A: Competition directly increases service choices for consumers.
• B: Expanded market operations typically raise employment levels.
• D: Profit-driven firms enhance productivity through better resource allocation.

Final answer: C