Why does the U.S. government maintain a monopoly in the delivery of first-class mail? Does the Postal Service nevertheless face other forms of competition?
The Postal Service is designed to provide services at a uniform price for all users. While it costs more to deliver mail to rural locations, these costs are offset by the relatively cheaper delivery of urban mail. The argument goes that any private-sector competition would focus on the more profitable urban areas and neglect the rural customers, or charge them much higher prices. The Postal Service does face competition in the delivery of packages (UPS) and express mail (FedEx and others). In addition, fax machines and electronic mail provide substitute services for those of the U.S. Postal Service.
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Incentives
A) are always used to encourage particular behaviors. B) are always used to discourage particular behaviors. C) can be used to either encourage or discourage particular behaviors. D) are never used to encourage or discourage particular behaviors.
The balance of payments ____
a. b and e b. is always zero c. is positive when the nation runs a trade surplus d. is negative when the nation runs a trade deficit e. is an itemized account of a nation's foreign economic transactions
Refer to Figure 9.3. The firm's profit it represented by what area?
A. AHID
B. ABCD
C. DCK0
D. EFG0
Economic analysis assumes that...
What will be an ideal response?