privatisation

Question 1

privatisation

Answer 1

state run activity sold off to private sector, run more efficiently due to profit motive

Question 2

graph of privatisation

Answer 2

-move to Pc and Qc

Question 3

advantages and disadvantages of privatisation

Answer 3

-allocative efficiency (gain support)
-reduction in x-inefficiency, profits
-creates dynamic efficiency

-limited competition, productive and allocative inefficiency
-loss making services
-loss of natural monopoly and loss of economies of scale benefits

Question 4

hat does privatisation depend on-

Answer 4

level of comp past privatisation
-level of government regulation