A) If the government, and through the enforcement of antitrust laws, believes the presence of competition in the marketplace achieves the highest level of market efficiency and fosters economic growth, why do governments have monopoly in providing some services such as DMV offices, professional licensing, business licenses, policing, public transportation, etc

A) Some services have to be under the complete control of the government. These are services whose sole purpose is to serve the people. If such services are privatized, the profit motive comes into play. Necessary services would then be given with a profit motive in mind. For example, we can not have a police service working for profit. Moreover, some industries are better off being monopolies as the economies of scale that can be seen are enormous (i.e., public transportation, electricity). These monopolies are known as natural monopolies.

B) More often than not, government monopolies are not efficient. This is due to the fact that such monopolies do not have to work solely towards a profit. Due to this, costs might creep up. There is definitely room for improved efficiency. This can be achieved through better work processes and higher productivity. In addition, monopolies also suffer from dead weight loss. This occurs because a monopoly price is higher than the price that would be seen in a competitive market.

C) Certain public services will benefit from private competition while others will not. When there is private competition, the quality of service goes up due to the increased competition. But again, in certain services like policing, we cannot have private competition as law and order cannot be privatized. At the same time, the government also has to look at the welfare of everyone. If there is competition in the public services space, governments will have to charge a competitive price which may deprive certain groups of people of the product.