Privatization Reduces Public Transport Coverage

Steps:

• Supporters of nationalization prioritize universal access over profits.
• Privatization shifts control to private firms focused on financial gains.
• Private operators cut unprofitable routes to boost efficiency and profits.
• This results in reduced service to less populated or rural destinations.

Why A is correct:

• Under profit maximization in private enterprise, firms eliminate low-revenue routes, shrinking overall network coverage as defined by economic theory of market-driven resource allocation.

Why the others are wrong:

• B: Privatization typically raises fares to increase revenue and cover costs.
• C: Services often become less frequent on marginal routes to cut expenses.
• D: Private firms reduce staff through efficiency measures to lower operational costs.

Final answer: A