Why might governments nationalize firms and why might a gove

Why might governments nationalize firms, and why might a government-owned firm have an unfair advantage over privately owned companies?

Solution

Why might governments nationalize firms?

There could be different reasons why a government might nationalize a firm, some of them are:

Why might a government-owned firm have an unfair advantage over privately owned companies?

Because a government -owned firm can lowe prices unfairly because they can afford to break even.

Government- owned firms can obtain lower interest financing.

They can also hold down wages with government assistance