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Debate Are government controlled monopolies better than perfectly competitive markets?

yes government controlled monopolies are better than perfectly competitive markets:-
1. The reason that governments tolerate monopolies is because they are also one themselves. They have ultimate monopolistic control and the legitimate use of power and force. Whether it’s criminal justice, police, military or mail almost all government agencies function as a monopoly. They also like to give out monopoly favor to some of their well connected friends.
2. Monopsony power. A firm with monopoly selling power may also be in a position to exploit monopsony buying power. For example, supermarkets may use their dominant market position to squeeze profit margins of farmers.

source:- http://en.wikipedia.org/wiki/Government_monopoly no government controlled monopolies are not better than perfectly competitive markets:-
1. I think the formation of monopoly is very important , especially during the time of recession. They can push out infant firms and became internationally competitive.
The fact that they have an EOS can reflect cheaper prices of their products.
However they have to earn abnormal profits , therefore they have to minimize total costs , to do that they have to pay less to their employees. That is the only disadvantage.
2. A monopoly is allocatively inefficient because in monopoly the price is greater than MC. P > MC. In a competitive market the price would be lower and more consumers would benefit. Higher Price and Lower Output than under Perfect Competition. This leads to a decline in consumer surplus and a deadweight welfare loss.
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