A.What gains can be expected from a policy of privatisation? Which, if any, of these gains arise because of the transfer from public ownership to private ownership? Do you agree with the argument that...

gains arise because of the transfer from public ownership to private ownership? Do you agree with the argument that what really matters is that competition is introduced or extended as a result of the privatisation?

B According to the British Nobel prize-winner, Sir John Hicks, ‘the best of all monopoly

profits is a quiet life’. Compare this view with Schumpeter’s hypothesis that

firms with monopoly power are the driving force in innovation..