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The United States Postal Servi - Online Term Paper

The United States Postal Servi


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 perfect 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. ce 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 ...

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under funded on its own. 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. If the receipts were submitted earlier the postal service would receive more money because they could invest that money sooner. Another way the Postal Service could increased profits was by competitively selecting banks that would give them higher interest rates and such. Probably the most relevant and final way to improve the budget of the Postal Service is to improve the bookkeeping policies and banking ...

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service. A stop to this could have saved the Postal Service $255,000 a year. From the numbers mentioned above, it can be seen why ce was losing so much money.
These problems did indeed eventually did get solved over the past fifteen years and now the Postal Service is making record breaking profits. Now in the first quarter of the fiscal year 1996 the Postal Service already has a net income of $1.2 billion. Now not only is the Postal Service just breaking even, but they are also making a profit. On top of that, the 1.2 billion dollar figure is 115 billion dollars better then the quarterly forecast predicted. It is incredible that they are not only making a reasonable profit but it is ...

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The United States Postal Servi. (2005, July 5). Retrieved December 23, 2024, from http://www.essayworld.com/essays/The-United-States-Postal-Servi/29592
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"The United States Postal Servi." Essayworld.com. July 5, 2005. Accessed December 23, 2024. http://www.essayworld.com/essays/The-United-States-Postal-Servi/29592.
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PAPER DETAILS
Added: 7/5/2005 01:20:26 PM
Category: Miscellaneous
Type: Premium Paper
Words: 2214
Pages: 9

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