I like the Post Office.

My grandfather was a mail carrier and so I have a particular affinity for the US Post Office (though, it did get him to hate dogs). The U.S. Post Office, which since 1845 has been largely a government monopoly, has been the object of continual controversy and the butt of many jokes.

A) Explain why the US first class mail delivery is generally considered to be a natural monopoly. Show a corresponding graph.

B) Due to decline in use or demand for the Post Office, it has been losing billions of dollars per year. Provide a few suggestions that microeconomics would approve of to fix or change first class mail delivery. Do you think we should allow the US Post Office to shut down? .