Question

The U.S. Postal Service is a monopoly provider of first-class mail delivery (other companies such as...

The U.S. Postal Service is a monopoly provider of first-class mail delivery (other companies such as UPS and FedEx can deliver packages, but not first-class mail). Do you think this is an example of a cost-based monopoly, or is there some other explanation?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It is a legally created monopoly where the government has given the exclusive right over the delivery of first-class mail to the USPS. This is not a cost based monopoly where the firm that is able to deliver a product at the lowest cost becomes a monopoly. Neither it is a natural monopoly where it is able to distribute the delivery at with economies of scale and a falling average cost.

Government has restricted other players to enter the market and deliver first-class mail. There are other modes of communication such as email, chats, social networking that are substitutes to first-class mail and taht are giving competition to USPS. Bit in the market for first-class mail. it is still the lone seller.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The U.S. Postal Service handles seven basic types of letters and cards: third class, second class,...
The U.S. Postal Service handles seven basic types of letters and cards: third class, second class, first class, air mail, special delivery, registered and certified. The mail volume during 1977 is given in the table below. What was the average revenue per ounce for these services during the year? Type of Mailing Ounces Delivered (in millions) Price per Ounce Third class 16,400 $0.05 Second class 24,100 0.08 First class 77,600 0.13 Air Mail 1,900 0.17 Special delivery 1,300 0.35 Registered...
The U.S. Postal Service is facing increased competition from firms providing overnight delivery of packages and...
The U.S. Postal Service is facing increased competition from firms providing overnight delivery of packages and letters. Additional competition has emails, fax machines, and text messaging. What will be the effect of this competition on the market demand for mail delivered by the post office?
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail....
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail. Over a period of 3 weeks, 18 of each type were mailed from the Network Distribution Center in Atlanta, Georgia, to Des Moines, Iowa. The total delivery time in days was recorded. Minitab was used to perform the ANOVA. The results follow: Source DF SS MS F P Factor 3 1.30 0.43 1.79 0.157 Error 68 16.45 0.24 Total 71 17.75 Level N Mean...
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail....
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail. Over a period of 3 weeks, 18 of each type were mailed from the Network Distribution Center in Atlanta, Georgia, to Des Moines, Iowa. The total delivery time in days was recorded. Minitab was used to perform the ANOVA. The results follow: Source DF SS MS F P Factor 3 4.19 1.40 6.36 0.001 Error 68 14.66 0.22 Total 71 18.85 Level N Mean...
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail....
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail. Over a period of 3 weeks, 18 of each type were mailed from the Network Distribution Center in Atlanta, Georgia, to Des Moines, Iowa. The total delivery time in days was recorded. Minitab was used to perform the ANOVA. The results follow: Source DF SS MS F P Factor 3 1.30 0.43 1.79 0.157 Error 68 16.45 0.24 Total 71 17.75 Level N Mean...
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail....
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail. Over a period of 3 weeks, 18 of each type were mailed from the Network Distribution Center in Atlanta, Georgia, to Des Moines, Iowa. The total delivery time in days was recorded. Minitab was used to perform the ANOVA. The results follow: Source   DF      SS   MS   F   P Factor   3      2.41   0.80   2.50   0.067 Error   68      21.58   0.32         Total  ...
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail....
The postal service sorts mail as Priority Mail Express, Priority Mail, First-Class Mail, or Standard Mail. Over a period of 3 weeks, 18 of each type were mailed from the Network Distribution Center in Atlanta, Georgia, to Des Moines, Iowa. The total delivery time in days was recorded. Minitab was used to perform the ANOVA. The results follow: Source DF SS MS F P Factor 3 1.65 0.55 1.57 0.205 Error 68 24.09 0.35 Total 71 25.74 Level N Mean...
The US Postal Service reports 88% of first-class mail within the same city is delivered within...
The US Postal Service reports 88% of first-class mail within the same city is delivered within 1 day of the time of mailing. Five letters are randomly send to different local addresses. What is the probability that: a.) All five arrive within 1 day b.) Exactly 4 arrive within 1 day
Give an example of a real-world monopoly or a firm close to being a monopoly. Discuss...
Give an example of a real-world monopoly or a firm close to being a monopoly. Discuss what you think is the source(s) of its market power. For instance, do you think this is an example of a cost-based monopoly or is there some other explanation, such as advertising or network effects, etc.
UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY United Parcel Service (UPS) started out in 1907 in a...
UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY United Parcel Service (UPS) started out in 1907 in a closet-sized basement office. Jim Casey and Claude Ryan—two teenagers from Seattle with two bicycles and one phone—promised the “best service and lowest rates.” UPS has used this formula successfully for more than a century to become the world’s largest ground and air package-delivery company. It’s a global enterprise with nearly 400,000 employees, 96,000 vehicles, and the world’s ninth largest airline. Today UPS delivers 16.3...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT