The U.S. Postal Service (USPS) is an independent establishment within the federal government. When the USPS suffers

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The U.S. Postal Service (USPS) is an independent establishment within the federal government. When the USPS suffers a financial loss, the federal government is responsible for providing the funds to cover that loss. The USPS has many costs, including the salaries of its workers, the cost of operating post offices, and the cost of maintaining its trucks. The USPS doesn’t deliver mail to homes on Sundays except for packages sent by Amazon. President Donald Trump has argued that the additional revenue the USPS receives from Amazon doesn’t cover all of the USPS’s costs. Managers at USPS have stated that while President Trump is correct, delivering Amazon packages on Sunday still reduces the USPS’s losses. Use marginal analysis to demonstrate how President Trump and the USPS managers may both be correct.

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Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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