Indicate whether the statement is true or false, and justify your answer. Consider the following theory due
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Indicate whether the statement is true or false, and justify your answer.
Consider the following theory due to Arrow (1963): nonprofits exist because for-profit firms are less trustworthy in the performance of actions that are hard to observe. According to this theory, government regulations requiring hospitals to report data on outcomes should lead to a lower share of nonprofit production in the hospital industry.
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