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Why private sector aim is different from public sector?

Updated: 9/17/2019
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Q: Why private sector aim is different from public sector?
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Difference between private sector public sector?

Public sector sports provision is that supplied by (usually local) government and includes such things as the local swimming baths, tennis courts in the local recreation ground, council football pitches, trim trails, community use of schools etc. The aim is to ensure that facilities in the local area conform to the council's guidelines and aims. They are provided to cover what is seen as a need in the local area, to fill what would otherwise be a gap in provision. Typically, the facilities are cheap or free and can vary quite widely in standard, some being quite basic.The private sector is run by businesses who aim to make good profits from providing those sport facilities that they view can be profitable for their companies. Facilities are typically of a high standard and are at the upper end of the price range. In the best scenario, private sector facilities are part of the overall provision for the local area and are co-ordinated with other sectors.Most sport in many areas comes from the voluntary sector in which the sport and leisure facilities are run for the members by the members and includes most local sport clubs


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When the government produces goods and services does it always compete with producers in the private sector?

The government generally steps in, in cases where there is market failure, where the market fails to make efficient allocation. In the government's model (or the public sector) there is no price competition i.e. the government's aim is to provide good quality output such that both ends benefit (that is the producer and the consumer) in terms of price paid. For ex: The government offers a reserve price for farmers so that if private players offer a lower price farmers can realise atleast the minimum reserve price by selling to the government, while they output gets distributed at the PDS at a price lower than private players offer, because the objective of the government unlike private sector is not profit making but efficient allocation in an attempt to make all better off. In some cases there is no alternative but government taking responsibility like for public goods, because of the property of non-exclusion.


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