Title: Arguments for nationalisation - Economics Help
Headings: Arguments for nationalisation
Arguments for nationalisation
Arguments for Nationalisation include
1. Natural Monopoly
2. Profit shared with taxpayer
2. Externalities
3. Welfare Issues
4. Industrial Relations
5. Government Investment
6. Free market failure
7. Saved banking system
Evaluation of benefits of nationalisation
Nationalisation vs Privatisation
Related pages

Content: This means the most efficient number of firms in the industry is one. This is because fixed costs are so high in creating a network of water pipes, there is no sense in having any competition. A private natural monopoly could easily exploit its monopoly power and set higher prices to consumers. Government ownership of a natural monopoly prevents this exploitation of monopoly power. If industry demand is 10,000 – then the most efficient number of firms is one. See more at: Natural Monopoly
2. Profit shared with taxpayer
If Virgin Trains set high ticket prices, you know the profit margin will go to a small number of wealthy shareholders. If the same service was run by a nationalised British Rail, any profit from profitable train services would go to government revenues and enable lower tax rates. 2.