Friday, May 31, 2019

The Postal Service Monopoly :: Economy

The postal work Monopoly In the United States economy most markets gouge be classified into four different markets structures. But, each and every market in the United States is completely unique from the others. Generallythe best type of market structure for the general public is per-fect competition because it creates the lowest possible pricefor the public. There are some exceptions were perfectcompetition isnt the best filling for the public on account ofvarious reasons. The United States Postal Service is one of themand since the Postal Service is a monopoly, it is its own market.This paper will reason the budget dilemmas that the postalservice has faced for the past twenty years and if it is in thebest interest of the economy for the United States Postal Service to widen as a monopoly. The first time there was talk of privatizing the Postal Service was in 1979 when the Postal Service was losing vast amountsof capital in the pine run. But since the Postal Service is anecessity for America, the government had to subsidize the servicein order for it to continue in operation. In 1979 the UnitedStates Postal Service had a cash flow of $22.5 Billion and wasadditionally receiving $176 million from investing(1, Intro).Even with this added revenue the Postal Service was still greatlyunder funded on its own (1, Intro). During this time it wasdiscussed to privatize the postal service and introduce competitionbecause of the extreme losses that the service was experiencing. Apositive argument for privatizing the Postal Service was withnumerous competitors in the market there would be moreefficiency and the public would receive lower prices. But thiswould also increase the usage of resources, for fount airplanes and cars. One of the problems the Post Office had was its receipts from consumer purchases that were submitted the next day after the transaction (1, i). If the receipts were submitted earlier t he postal service would receive more money because they could invest that money sooner (1, i). Another way the Postal Service could increased

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