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The authorities cannot tell simply to the managing director. "Do not worry about profit". TheyShould give it more certain and exact orders. What can be These orders?
Answer this question fondly enough: "the Problem of the state
The enterprises granting to company of useful services "is. But a problem not
So it is simple. Granting of useful services is a unique problem of any The enterprises. But what this term means? Who, with reference to To government facilities, should decide, whether service is useful? And
That it is even more important, as we learn, whether not too is much paid for
The rendered services, i.e. whether are distracted factors of production, Spent at fulfilment of these services, from other spheres, where them Use could supply granting of more valuable services? For the private enterprise aspiring to profit taking, criterion is
The relation of people. Utility of represented services is proved that is enough
The great number of citizens is ready to pay the price requested for them. Cannot be
Any doubt that buyers consider useful services, Represented by bakers. They are ready to pay the price requested for bread. At this price the panification usually extends until There will come saturation i.e. until the further expansion does not become To distract factors of production from industries, on production Which there is more intensive demand of consumers. Having taken in quality Reference point motive of profit taking, a free enterprise Adapts the activity for wishes of people. Motive of profit taking Forces each businessman to render those services, which consumers Consider as the most necessary. The price market organisation speaks
To businessmen, how much they are free in a choice of this or that branch for
The investments. But if government facilities begin to operate, without paying attention on
The profit, behaviour of people will cease to serve as criterion of its utility. If
Central or municipal authorities are complete of determination to continue production,
Regardless of the fact that working costs do not pay off the monetary Receipts from buyers where the criterion of utility can be found
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