Eeconomics of public enterprise

The segment of reality with which this study is concerned ts the public sector of organized industry, which is the major instru ment of economic planning in a mixed economy. To understand the role and economics of public enterprises, it is necessary to perceive the problem in its proper background with the aid of a theoretical apparatus, which can interpret reality meaningfully. A theoretical model is like a map of the earth's surface. A map is necessary for a geographer to explore the country, but it cannot depict every intricate detail of the contours of the earth's surface. Similarly, an economic model, which is simple and abstract in nature, is necessary for getting a coherent bird's-eye-view of economic reality, in order that helpful policy recommendations may be made, but it is not sufficient to render complete advice on the issue at hand, for no social problem can be viewed only in the economic perspective, unrelated to socio-political considerations. Even within the economic sphere there may be multiple causation for a particular phenomenon, but it is often found that there is a queen bee around which other bees build up the whole honey-comb organisation.