1.

State with reasons whether you agree or disagree with the following statements:Public Monopoly is welfare oriented.

Answer»

Yes, I agree with this statement.

  • Public Monopoly is solely owned, operated and controlled by the Government.
  • Government owned firm provide utility service. It does not aim at profit but welfare maximisation.
  • Utility services like the Railways, banks, water supply etc., if left to the private firms will lead to exploitation.
  • This is because such services have inelastic demand, so if it is left to private firm they will charge high prices.


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