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Failures in an economy, whether a free market one, or one heavily controlled by the government, will always experience market failures in various parts of a nation's economy.
The private sector in a free market environment can help avoid serious economic problems by not over extending itself beyond its means.
Here is an example of what this means:
A. General Motors once was the number 1 automobile seller in the USA;
B. GM, failed many times to keep employment costs during union negotiations within a reasonable cost structure; and
C. The result of GM's failure to put together better contacts with the auto companies major unions, led to the higher cost of GM cars, and thus it helped create a market failure in the US automobile market.
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∙ 10y ago
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In the light of existence of market failure can the operatons of museum be left to the private sector?
The contents of a museum belong to the public for their contribution to culture, even if the pieces themselves are privately owned. If the failure of a museum will mean loss of the artworks, then the public sector needs to step in. If the private entity can save the artwork, then they should be allowed to do so.
What is the difference between public and private sector organisations?
Public sector uses public tax dollar and is not subject to the free market
Is Coca Cola a public sector or a private sector company?
Is a private sector
Is the NFL a public sector or private sector?
private
Is microsof pulbic or private sector?
Microsoft is in the private sector.
What do you mean by private sector banks?
Private sector banks is a bank that is owned by the private individual. Thats bank called private sector bank.
What are private sector and public sector?
Private sector are things that are owned by people. Public sector are things that are owned by the government.
Depending on the state of the market the government May reduce the taxes collected from the private sector by granting which of these?
tax credits
Depending on the state of the market the government may reduce the taxes collected from the private sector by granting what?
Tax credit
What are private sector wages?
They are the wages paid to employees in the private sector.
Does Cadbury belong to a private or public sector?
It is a private sector company.
Differences between public sector accounting and private sector accounting?
The difference between public sector and private sector is that when you're in the public sector you work for the government whereas private sector is not. Same applies to accounting.
