Privatization. With airline regulation, high prices were eaten away by ever-rising costs for new airplane equipment, fancy meals, and redundant employees. In the post-deregulation period, passenger fares have plummeted as consumers made known their preference for safe and reliable service with cheap airfares. Critics of public sector management of the U.S. Post Office contend that experience with airline deregulation suggests that privatization of the U.S. Post office would lead to dramatic cost reductions and service improvements.
A. Explain how breaking the U.S. Post Office monopoly could help reduce the cost and improve the quality of first-class mail delivery.
B. Explain why privatizing the U.S. Post Office might not lead to such advantages.

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The Answer of Privatization. With airline regulation, high prices were eaten away by ever-rising costs for new airplane equipment, fancy meals, and redundant employees. In the post-deregulation period, passenger fares have plummeted as consumers made known their preference for safe and reliable service with cheap airfares. Critics of public sector management of the U.S. Post Office contend that experience with airline deregulation suggests that privatization of the U.S. Post office would lead to dramatic cost reductions and service improvements.
A. Explain how breaking the U.S. Post Office monopoly could help reduce the cost and improve the quality of first-class mail delivery.
B. Explain why privatizing the U.S. Post Office might not lead to such advantages.