Process of returning to the private sector property

Assignment Help Business Economics

Reference no: EM131000916

Privatization can be defined as "the process of returning to the private sector property or functions previously owned or performed by government". The basic idea is that there may be some services that the government is providing right now that the private sector might handle better. Sometimes the government no longer provides the service and allows private companies to run (and compete with each other) to provide the service (like sometimes happens with garbage pickup). Other times the government contracts with a company that can provide the service cheaper than the government agency could (like when a city contracts with a private landscaping company to trim the trees on public sidewalks). The idea is to have a more efficient, more effective service. Recently there have been some arguments that the United States Postal Service (USPS) should be privatized. Name one pro and one con of privatizing the USPS. If you had the power to privatize the USPS, would you? Explain)

Reference no: EM131000916

Questions Cloud

The substitution and income effect of this price increase : Mike spends all his money on Jelly Beans and Gummy Bears and these two products are perfect substitutes for Mike. A few of Mike’s indifference curves are shown in the figure below. The dark line L is Mike’s budget line at current prices. The Jelly Be..

What is the formula for the new budget line : If the government establishes a quantity subsidy on the consumption of a good, it means that the consumer has to pay for each unity of the good its price minus the subsidy. The government decides to impose a quantity tax of t on good 1 and a quantity..

Compute the consumer surplus and the producer surplus : Consider a demand market and assume the demand and supply functions are given by: demand: q=35-p and supply: q=2p-10. determine the equilibrium price and quantity (p*, q*) in this market. illustrate your answer graphically and compute the consumer su..

Imposes a quantity tax on the consumption of a good : If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax. Denote by t the amount of dollars a consumer has to pay for every unity she consumes in exc..

Process of returning to the private sector property : Privatization can be defined as "the process of returning to the private sector property or functions previously owned or performed by government". The basic idea is that there may be some services that the government is providing right now that the ..

Establishes quantity subsidy on consumption of a good : If the government establishes a quantity subsidy on the consumption of a good, it means that the consumer has to pay for each unity of the good its price minus the subsidy. That is, the price of the good becomes, in the consumer’s point of view, p−s,..

Income calculated using only exchange rates : Let’s say that there are many non-traded goods relative to traded goods. You are comparing the income of a rich country to the income of a poor country. For the poor country, do you expect PPP-adjusted income to be higher or lower than income calcula..

When the monopolist serves both markets : Suppose that there are two markets, given by the following demand curves, q1(p1) and q2(p2); and a monopolist with cost function c(q1, q2). Solve for the first-order conditions to characterize the optimal solution when the monopolist serves both mark..

Why would strengths weakness opportunities and threats : Kim Harris owns and operates a small retail store, selling the outdoor clothing of an American manufacturer to a predominately college-student market. Lately, a large department store outside of town has started selling similar but lower-priced cloth..

User Account

All Pages