Question

If all the places where you currently buy goods and services (HEB, Walmart, doctors' offices, telephone company, etc.) were now owned by the government, what would we expect to happen to the quantity, quality, and prices of those goods and services? To answer this question, think of what happens to the effort placed by the producer when you eliminate competition in favor of a single producer (the government).

Answer 1

If all the places from where current goods and services are being bought, are owned by government, quantity will fall price will rise and quality will diminish.
Prices rises because government (a monopoly) more than the marginal cost as opposed to the competitive firm which charges price equal to marginal cost.
Quantity falls because, monopoly determines its quantity according to downward sloping demand curve as opposed to the perfectly elastic demand curve of a competitive firm.
Quality diminishes because monopoly does not have an incentive to improve quality due to lack of competition.