The impact of post office cost and rule changes

An article in the New York Times (March 26,2012) describes how different industry sectors might be impacted by decisions made by the post office. Greeting card manufacturers and drug distributors claim that increased post office rates will decrease their demand and make them less competitive. But beer and wine distributors want to permit delivery by the post office, thus decreasing their delivery costs. How should the post office adjust its rates while anticipating the possible demand impact on different sectors ? Should current industries who get a break in delivery costs be provided assistance from the Federal government ? Should the post office decision just be based on covering post office costs ?

About aviyer2010

Professor
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