Question

Merit of public sector

Answer 1

Answer:

Advantages of a Public Corporation

Economies of scale. Easier planning and coordination. Autonomous set-up. Protection of public interest

Explanation:

Answer 2

Public sector basically means the economic sector that is owned and administered by the state or the government both at the central or state level in any country.Some of the industries that come under public sector commonly include infrastructure,public utilities,transportation services,water and gas supply,electricity and power and so on.

Explanation:

Main merits of the public sector:-

1. Autonomy and independence:Public enterprises usually functions independently and with full liberty without any external interventions.Therefore,operational liberty enables improvement of productive efficiency and proper utilization of productive resources.
2. Safeguarding public interest:Public companies or enterprises are usually not profit oriented or motivated by any economic incentives like private companies.The main objective of public sector organisations is to work for the general public and provide them with the goods and services as per public necessities.Hence,the goal of the public sector is socio-economic welfare of the nation as a whole.
3. Optimum Pricing:The public goods and services are provided to the general public at affordable prices as these are consumed by people from all economic background and class.Therefore,unlike,private sector,public sector prices are much more reasonable and restricted to benefit the consumers.
4. Economies of Scale:Public companies or enterprises can enjoy scale economies,meaning that they can produce public goods and services at a fairly low cost or expense and provide to the general civilians at a reasonably affordable price.Hence,from business standpoint,public companies can achieve productive efficiency by producing for the mass at a relatively low cost and the consumers can also enjoy lower and affordable prices.
5. Well-being of employees:Public sector companies have their own set of criteria for human resource management pertaining recruitment,employee training and development and employee policies and laws.They provide much more employee benefits and post-retirement benefits as compared to private corporations.The salary,employee benefits and policies are much more stable and lucrative in public sector companies than the private ones.