Briefly explain the problems of pricing of public goods
Answers
pricing policy should a Public Enterprise (PE) adopt? It is a complex problem and is not possible to lays down, general principle of pricing that should be followed by all the PEs. The complexity of pricing problem arises because of the fact that some PEs are industrial and commercial undertakings; some PEs are promotional and developmental; and some PEs provide basic and essential infrastructure facilities.
Also, competitive environment—domestic and international—has got to be taken into account in the case of goods produced by some PEs. There is also to be considered the need for financial resources for investment purposes in a developing country like India. From all these considerations; it should follow that there cannot be just a single, principle of guiding of pricing that can be prescribed for or that should be followed by all PEs.