Profit, sales and revenue maximisation
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State owned companies
State owned (nationalised) companies or corporations are often thought to be 'good' because they are not profit maximisers. It is argued that they act 'in the public interest', avoid externalities, and minimise wasteful activities. However, this may not always be seen on examination of real nationalised corporations since many operate inefficiently and rely on government subsidies to survive, thus costing the taxpayer money.
Identify some state-owned companies in your own country. Quite often companies providing postal services, telecommunications and nuclear energy might feature in such a list. Since the collapse of many banks, resulting from a lack of adequate regulation in the banking sector, in the USA and across Europe, many are wholly or part-owned by their government who bailed them out financially. Research the background to some of the companies you have identified. You may find it most interesting, especially when you see how much of the tax payers money has been used!
