U.S Postal Service as a Monopoly

1346 WordsOct 8, 19996 Pages
U.S Postal Service As a Monopoly 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 per-fect 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. The United States Postal Service 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…show more content…
A stop to this could have saved the Postal Service $255,000 a year (#2, iii). From the num-bers mentioned above, it can be seen why the United States Postal Service 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 (#3, 1). 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 (#3,1). It is incredible that they are not only making a reasonable profit but it is increasing over the years. The Postal Service is also now reducing debts. An example of this is when the Postal Service redeemed a 1.5 billion dollar loan two years in advance which will save them 22 million dollars of interest in the next two years (#3,1). The Postal Service isn't stopping with the revenue that it is receiving now. The Postal Service is planning to increase its international revenues of $1.2 billion by twice the amount in the next five years and ten-fold by the year 2005 (#5, 1). The Postal Service is continually working to "streamline" their operations for the future that they are now run-ning. The Postal Service is continualy

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