Government has an advantage over private producers: it has the coercive power to solve some kinds...

Government has an advantage over private producers: it has the coercive power to solve some kinds of market failures. Does government use that power properly? Does government have any disadvantages relative to private producers?

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Expert Solution

We can say yes, government uses their coercive power properly by solving market failures. To meet their criteria they work with their best of their abilities . We can take an example when government prevented Bell stopped its monopolistic approach allowed perfect competition to keep things accordingly but still we can say they do not use their coercive power correctly and efficiently

Government faces disadvantages in most of the cases where government can't do whatever they want do reason behind is government has to serve the majority of public and to take their approval in order to perform their task they have to go through democratic process to adopt new task to work upon in many cases

Rahul Sunny answered 2 years ago

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