Question

Explain how an improper price policy results in the poor performance of the public sector enterprises. 

Answer 1

1. Public sector undertakings in India have mainly failed because of their wrong pricing policies.
2. They do not run purely based on commercial considerations.
3. Prices of their products are generally kept low and suffer losses.
4. They do not bother about getting profits as they give greater importance to the motive of social welfare.