Monopoly of the Postal Service-
In the United States economy most markets can be classified into four different markets structures. But, each and every market in the United States is completely unique from the others. Generally the best type of market structure for the general public is per-fect competition because it creates the lowest possible price for the public. There are some exceptions were perfect competition isn't the best choice for the public on account of various reasons. The United States Postal Service is one of them and since the Postal Service is a monopoly, it is its own market. This paper will discuss the budget dilemmas that the postal service has faced for the past twenty years and if it is in the best interest of the economy for the United States Postal Service to continue as a monopoly. The first time there was talk of privatizing the Postal Service was in 1979 when the Postal Service was losing vast amounts of money in the long run. But since the Postal Service is a necessity for America, the government had to subsidize the service in order for it to continue in operation. In 1979 the United States Postal Service had a cash flow of $22.5 Billion and was additionally receivin
five years and ten-fold by the year 2005 (#5, 1). The Postal Service 5) http://www.usps.gov/news/press/95/95090new.htm It can be seen throughout this paper how the United States $333 billion in the year 1994 (#6,1). This figure is expected to reach side compe-tition is thought to make industries in the market more During this time it was discussed to privatize the postal service and Washington: General Accounting Office,","1979 higher interest rates and such (#1, ii). Probably the most relevant the route covered, so the carriers were getting paid by the mile (#2, a 1.5 billion dollar loan two years in advance which will save them 22 3) http://www.usps.gov/news/press/96/96002new.htm 4) http://nutcweb.tpc.nwu.edu/research/abstracts/i.2.html Postal Service's cash management practices could increase income and making a profit. On top of that, the 1.2 billion dollar figure is 115 skimming, with the postal service left only the high-cost,
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Approximate Word count = 1310
Approximate Pages = 5 (250 words per page double spaced)
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