AskEssays.com - Discover essay samples

Monopoly of the Postal Service

4.9 of 5.0 (49 reviews)

Contains
665 words
Category
Business

Monopoly of the Postal Service Page 1
Monopoly of the Postal Service Page 2
The above thumbnails are of reduced quality. To view the work in full quality, click download.

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 receiving $176 million from investing(#1, Intro). Even with this added revenue the Postal Service was still greatly under funded on its own (#1, Intro). During this time it was discussed to privatize the postal service and introduce competition because of the extreme losses that the service was experiencing. A positive argument for privatizing the Postal Service was with numerous competitors in the market there would be more efficiency and the public would receive lower prices. But this would also increase the usage of resources, for example 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 the postal service would receive more money because they could invest that money sooner (#1, i). Another way the Postal Service could increased profits was by competitively selecting banks that would give them higher interest rates and such (#1, ii). Probably the most relevant and final way to improve the budget of the Postal Service is to improve the bookkeeping poli-cies and banking techniques (#1, ii).
Not only did the Post Service propose to increase profits but they also proposed to cut costs in a number of ways. There were three methods that were proposed in 1946 for the protection of salaries that no longer exists (#2, Intro). These have to do with the rural mail carriers. Under this antiquated method of delivering mail the Postal Service was los-ing money to any mail that went to ?rural? areas (#2, i) There are 48,000 mail carriers that deliver mail to millions of families that are considered to be living in rural settings; this costs the postal Service 858 million dollars a year (#2, i). This is a fairly easy problem to fix considering how much money is being lost. It was proposed that money loss could be significantly cut down if the Postal Service corrected the following problems. The rural mail carriers were assigned a certain amount of time to deliver to a specific rural area, this method was out of date and because of this the carriers have free time for which they got paid for (#2, ii). The next problem was that other mail routes based pay on how many miles the route covered, so the carriers were getting paid by the mile (#2, iii). With this problem fixed the Postal Service could saved 26.8 million a year (#2, iii). There was also an hourly rate that was in effect which indirectly promoted inefficient service (#2, iii). A stop to this could have saved the Postal Service $255,000 a year (#2, iii). From the num-bers mentioned above, it can be seen why the United States Postal Service was losing so much money.
These problems did indeed eventually did ...

You are currently seeing 50% of this paper.

You're seeing 665 words of 1330.

Keywords: monopoly postal services, what type of monopoly is the us postal service, what kind of monopoly is the us postal service, why is the post office a monopoly, is usps a monopoly

Similar essays


Introduction to Ecommerce

What is Electronic Commerce? ?E-commerce has the potential to unleash enormous savings and business efficiencies, but the practicalities remain elusive. How will e-commerce change the global planning and purchasing of transport and logistics in the supply chain? Logistics has been described as the key enabler for e-business ' but h...

117 reviews
Download
Motorola Analysis

There are numerous cellular service providers in the United States. With the recent boom in sales in the consumer market it is important that Motorola clearly define it?s current market segments and identify any we have over looked. Because of the fierce competition, it is also very critical that we explore the needs and wants of...

132 reviews
Download
Radio Station Research

Introduction Music is a general love of almost every college student. Many develop their personalities, profiles, and various other tastes based on their listening choices. In general, many college students acquire the same spectrum of listening values. If a radio station, one that wishes to target the college student populati...

39 reviews
Download
The Economy of the Phillipines

Per Capita Income: Since I am the first person reporting, I would like to explain what per capita income means. The per capita income of a certain country is the GDP of that country divided by the total population. In the Phillipines the per capita income is approximately $700. When compared to the per capita income of the Unite...

194 reviews
Download
Buffer Stocks

- 2. - One step a government might take in order to stabilize agricultural prices is to use the technique of buffer stocks. The very basic idea of this is letting the government set a minimum price on agricultural goods. This price will usually be above the price where demand meets supply, so the government must buy the excess q...

86 reviews
Download
Capitalsim History

Capitalism Capitalism is the name given to the economic system that incorporates free enterprise and a market system by Karl Marx, the founder of communism. By the textbook definition, capitalism is an economic system in which private individuals and business firms carry on the production and the exchange of goods and services th...

85 reviews
Download
European Economic and Monetery Union

The Economic and Monetary Union (EMU) is a single currency area within the European Union in which people, goods, services and capital move without restriction (Europa Quest (1), 2001). Imperative to the success of the EMU is the implementation of a single European currency, the Euro, and the application of specific macro-economic...

188 reviews
Download
Real Estate Economics

Introduction to Real Estate Real Estate is, by definition, the land and everything that is a part of it and the extent of one?s interest in it. The word real in real estate stands for the fact that it is land and different than personal property. It is real property, property that is more or less immobile. The word estate in re...

81 reviews
Download
The National Debt

The federal debt of $5.7 Trillion, or $21,000 per child. This chapter covers all U.S. debt, called National Debt (national debt is here defined as the sum of all recognized debt of federal, state & local governments, international, private households, business and domestic financial sectors, including federal debt to trust funds -...

163 reviews
Download
Deficit Spending

?Spending financed not by current tax receipts, but by borrowing or drawing upon past tax reserves.? , Is it a good idea? Why does the U.S. run a deficit? Since 1980 the deficit has grown enormously. Some say its a bad thing, and predict impending doom, others say it is a safe and stable necessity to maintain a healthy economy. W...

47 reviews
Download
Lucent Technologies

In 1996, AT&T decided to split into three different companies. These new companies were the new AT&T, NCR, and . is one of the leading designers, developers, and manufacturers of telecommunications systems, software, and products.1 They are beginning to emerge as a Fortune 40 company. builds local networks, business telephone s...

206 reviews
Download
Copyright and Publishing

Copyrights are designed to provide some form of protection against unauthorized use of original informational materials. The rapid shift of information production and distribution to electronic form, with its corresponding ease of copying, naturally makes copyright-dependent industries nervous. Much talk in the news and on the ne...

35 reviews
Download
Marketing the Electronic Business Card Major Marketing Project

Marketing the Electronic Business Card - Major Marketing Project Executive Summary Far from being a simple business card, the E-card is an excellent marketing tool that can be tailored to fit the market being reached. At present, the current situation offers E-Card Design Inc. an excellent opportunity to capture a significant mark...

93 reviews
Download
Motivational Theories

The success of any organization depends on the ability of managers to provide a motivating environment for its employees. Motivated employees are more productive, happier, and stay with the organization longer. One of the primary tasks a manager faces is to find out what motivates their staff. By understanding employee needs, manag...

197 reviews
Download
Atsisiųsti šį darbą