Business Studies, asked by prateekrggupta1749, 1 year ago

Advantages and disadvantages of public sector in india

Answers

Answered by Akash7766
2
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i. They base their decisions on the full costs and benefits involved.

ii. They can be used to influence economic activity. To boost the country’s output, public corporations can be directly encouraged to increase their output.

iii. In cases where it is practical to have only one firm in the industry, such as rail infrastructure, a public corporation would not abuse its market power.

iv. Ownership of a whole industry by the government makes planning and coordination easier. For instance, if the state runs the train system, it can ensure that train timetables are coordinated.

v. It is important to ensure that basic industries, such as electricity and transport survive, charge low prices and produce good quality as other domestic industries depend on them.

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