Classifications of Market Structures in the US

In the United States delivery most markets can be categorise into four different markets structures. But, each and all(prenominal) market in the United States is whole unique from the others. Generally the opera hat role of market structure for the general mankind is per-fect competition because it creates the lowest possible outlay for the public. There be some exceptions were reveal competition isnt the best quality for the public on account of versatile reasons. The United States postal swear out is i of them and since the postal dish up is a monopoly, it is its stimulate market.This news report will discuss the reckon dilemmas that the postal military service has faced for the gone twenty divisions and if it is in the best interest of the economy for the United States postal servicing to watch as a monopoly. The first time there was reprimand of privatizing the postal table service was in 1979 when the postal military service was losing vast dos of bills in the long run. But since the postal gain is a necessity for America, the g everywherenment had to subsidise the service in order for it to continue in operation. In 1979 the United States postal renovation had a cash liquefy of $22.Billion and was additionally receiving $176 million from investing(1, Intro). in time with this added receipts the postal Service was clam up greatly under funded on its regress birth (1, Intro). During this time it was discussed to privatize the postal service and introduce competition because of the extreme losings that the service was experiencing. A positive affirmation for privatizing the postal Service was with numerous competitors in the market there would be much efficiency and the public would receive begin prices. But this would besides append the tradition of resources, for manakin airplanes and cars.One of the tasks the Post component part had was its receipts from consumer purchases that were submitted the next day afterward the transaction (1, i). If the receipts were submitted earlier the postal service would receive more money because they could invest that money sooner (1, i). other way the postal Service could increase net profit was by competitively selecting banks that would give them higher interest numbers and much(prenominal) (1, ii). Probably the most relevant and concluding way to improve the bud select of the Postal Service is to improve the bookkeeping poli-cies and banking techniques (1, ii).not further did the Post Service direct to increase loot besides they as well proposed to cut costs in a number of ways. There were three methods that were proposed in 1946 for the protection of salaries that no longer exists (2, Intro). These bring in to do with the rural institutionalize carriers. nether this antiquated method of delivering berth the Postal Service was los-ing money to any stake that went to rural atomic number 18as (2, i) There be 48,000 situation carrier s that deliver mail to millions of families that are considered to be living in rural settings this osts the postal Service 858 million dollar bills a socio-economic class (2, i).This is a fairly easy difficulty to fix considering how much money is organism lost. It was proposed that money loss could be significantly cut down if the Postal Service corrected the following problems. The rural mail carriers were assigned a certain amount of time to deliver to a particular(prenominal) rural area, this method was out of involvement and because of this the carriers bewilder free time for which they got paying for (2, ii). The next problem was that other mail routes based pay on how many an(prenominal) miles he route covered, so the carriers were getting paid by the mile (2, iii).With this problem fixed the Postal Service could protected 26. 8 million a form (2, iii). There was also an hourly rate that was in effect which indirectly promoted ineffectual service (2, iii). A stop to this could have excused the Postal Service $255,000 a class (2, iii). From the num-bers mentioned above, it can be seen wherefore the United States Postal Service was losing so much money. These problems did indeed eventually did get solved over the past fifteen historic period and forthwith the Postal Service is making record reaking profits. without delay in the first quarter of the fiscal course of instruction 1996 the Postal Service already has a net income of $1. 2 one thousand thousand (3, 1). Now not only is the Postal Service just breaking even, scarce they are also making a profit. On top of that, the 1. 2 one million million million dollar figure is 115 billion dollars better then the quarterly forecast predicted (3,1). It is undreamed that they are not only making a reasonable profit but it is increasing over the familys. The Postal Service is also now reducing debts.An example of this is when the Postal Service redeemed a 1.5 illion 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 isnt 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 functional to streamline their operations for the future that they are now run-ning. The Postal Service is continualy feel at to cut back on acquire money.All of the recent financial borrowing has been through the Federal Financing Bank, but the Postal Service now is looking into outside sources, such as bonds in the public markets (5, 2). craft are startle to get jealous of the Postal Service because of the great prof-its it is experiencing. The Postal Service is now making a major impaction on the United States Economy (6, 1). Business are pointing out that in 1995 the Postal Service had records of $1. 8 billion in net income and a 1. 7 billion dollar debt reduction (6, 1).The $54 billion revenue that the Postal Service is anchor ring in would put them in twelfth place on the part d list and 33rd on the Fortune Global 500, with the worlds largest corpora-tions (6,1). A recent adopt showed that domestic direct mail sales were at $333 billion in the year 1994 (6,1). This figure is expected to reach over $500 billion by the year 2000 (6,1). It can be seen throughout this paper how the United States Postal Service in-creased profits and does not have to borrow as much money as before. It seems that the Postal Service is doing just fine date it is a monopoly.But there are still two arguments for and gainst the Postal Service continuing to remain a monopoly. On one side compe-tition is thought to take industries in the market more competent and practice more innova-tive (4, 1). But on the other hand the competition is also thought to lead to a wide-spread lap skimming, with the postal s ervice left only the high-cost, unprofitable markets (4, 1). So who is to know which market would be better for the American economy as far as the Postal Service goes. But it is speculated if the United States Postal Service does keep increasing its profits over the years, maybe it will be privatized.