Explain Why Privatization Can Help the Economy Become More Efficient

question 22

Essay

Explain why privatization can help the economy become more efficient.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, all of whom sell homogeneous products, with no single party able to influence the market price.

Output Quantity

The amount of goods or services produced by a company or sector within a specific period.

Network Effects

The phenomenon whereby increased numbers of people or participants improve the value of a good or service.

Simultaneous Consumption

A situation where a good or service can be consumed by more than one individual at the same time without reducing the quantity available to others.