Answer to Question #101751 in Economics of Enterprise for Musbahu Ahmad Ibrahim

Question

What are the advantages and disadvantages of public sector?

Answer 1

Some of the many advantages of a public corporation include the following:

• Economies of scale
• Easier planning and coordination
• Autonomous set-upProtection of public interest
• Quicker decisions

Some of the disadvantages of operating a public corporation include:

• Difficult to manage
• Risk of producing inefficient products
• Financial burden
• Political interference
• Misuse of power
• Consumer interests ignored
• Expensive to maintain and operate