72.6k views
3 votes
Discuss whether or not private sector firms are likely to charge lower prices than public sector firms.​

1 Answer

6 votes

Answer: Maybe not

Step-by-step explanation:

Private sectors are expensive. Theoretically, they are basically customer oriented and do not come under any political pressure. However, in terms of public sector firms, they are more likely to be influenced by political pressures.

Public sectors are less expensive but deteriorate in terms of quality. On the other hand, the private sectors appear to be good in terms of quality. Thus, if the public sector increases its quality and if government works well on the quality issue, the problem can be solved.

There can be many ways that the government can help with the issue. One way is that the government can raise funds for the public sector. By doing such, middle-class people especially can get help as the prices tend to be low in public sector firms. It is also found that though of low quality but middle-class people tend to move towards the public sector more.

User Declan Greally
by
8.1k points

No related questions found