Y2 29) Privatisation

Privatisation - A theoretical understanding behind privatisation and why governments look to privatise industries. Exam technique included

[EconplusDal]

You are correct - this diagram is purely a representation of moving towards competitive outcomes. You will most certainly be credited highly in an exam if you explain the diagram as I have in the video

[emilyyi]

YOU ARE A GENIUS. CAN'T THANK YOU MORE. SERIOUSLY BRO.

[aaryan]

who else is here after the 2019 prediction video

[ryano]

im a bit confused by the diagram. if firms are trying to profit maximise why are they moving from MR=MC to AR=MC instead of staying at the profit maximising level?

[georgelewis]

@1:30 surely, pre privatisation, the firm would be producing at the socially optimum level of output where mc = p?

[rezaulnaim]

I am here one day before my economics o level exam 🙃 . I am learning new things.

[joshuaappiah]

Hi, you are the specialist here and I am just curious about something.

You say that the triangle is the gain in consumer surplus. But is the gain in consumer surplus not the triangle plus the rectangle to the left of it?

Thanks, Josh

[mayixb]

Hi @EconplusDal,
I’m a little confused why the diagram you have drawn would not be the other way? As surely when a state firm is privatised it is likely to become a monopoly whilst a state run company looking to maximise social welfare will produce where MC=AR?

[dbrk]

Why is it that you represent a nationalised firm profit maximising? Just out of curiosity, thanks in advance

[anishparpani]

Hi, i had a question regarding the diagram to draw in an essay if it asked "has rail privatisation been successful."
Would I draw a Perfect competition diagram as that was the aim (increase competition) and how would I explain that? Or would i draw a monopoly diagram as that is in fact what happened with the formation of rail track?
Thank you for your videos!

[marlinjokondo]

Thank you so much l have present ions tomorrow about privatization and this really help me may God bless you

[benjennings]

I have so many wants (I suppose they are unlimited..) one of which is a video on integrated transport policy. The OCR A2 text book is pretty bad in my opinion in this area of Transport Economics and I'm sure all A2 Transport economists would be even more grateful, but then again that is quite impossible :)

[allislapbarri]

can the lack of competition be blamed on some firms inheriting a natural monopoly??

[xPSG]

Hi, quick question.
When drawing the cost and revenue diagram, when should you have the min point of the AC curve at MC=MR? I understand the min point is productive efficiency, but I'm confused as to why sometimes the min point passes through MC=MR and sometimes it doesn't.
Cheers.

[lctmslctms]

Hi, your videos are amazing and really helpful.
I got a question wanna ask.
For the diagram you had mentioned at the very begging, I'm wondering whether or not it is a valid comparison of privatization.
Since the first price level is set under the the assumption of profit maximization which is not the objective of a government owned department( perhaps AR=AC). I can understand you want to show us the idea in which by the process of privatization, it will increase the quantity and lower the price level. But just my curiosity. Please point out any mistake that I have made in this question, thank you.

[PeterHYLA]

Hi, Privatisation is transferring a public asset into the private sector so it was initially run by the government right? Wouldn't it have already been allocatively efficient under state control?

[dalma.peller]

Hey sir, I was just wondering how do you show the Deadweight loss before moving to competitive outcomes?

[samwalt]

Hi, with privatisation, is there a chance of reorganisation within the firm?

[humaraja]

Hi, Your videos are really helpful. Can you do some videos for global economy? e.g.  Latvia internal devaluation

[Ronriko]

The argument that private corporations will be forced to run efficiently to guarantee profit is false. They would love to obtain greater profit as less cost, who wouldn't want that.