Why is the public sector required to provide certain things at a reasonable cost?

cbse
economics
cbse-class-10
sectors-ind-economy
cbse-class-10-social

#1

Why is the public sector required to provide certain things at a reasonable cost?

Answer:

  • The purpose of the public sector is not just to earn profits but to think about the social benifits also.
  • There are several things needed by the society as a whole but which the private sector will not be able to provide at a reasonable cost.
  • Some of these require large sums of money to be spent, which is beyond the capacity of the private sector.