ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The isolated location makes it impossible for any other providers of utilities to compete
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It is most efficient to allow only one supplier of electricity or water because of economies of scale
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Providing utilities is not attractive to private companies because of limited opportunities to make a profit
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The government wishes to reward the technological innovation of the utilities providers with limited competition
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Detailed explanation-1: -public utility, enterprise that provides certain classes of services to the public, including common carrier transportation (buses, airlines, railroads, motor freight carriers, pipelines, etc.); telephone and telegraph; power, heat, and light; and community facilities for water, sanitation, and similar services.
Detailed explanation-2: -Water supply, electricity and transportation are the public utility services that are provided by the government to the people.
Detailed explanation-3: -Public utilities are those business undertakings which provide necessary services to the society. The undertakings dealing with the supply of electricity, gas, power, water and transport etc. are all covered under public utility services.
Detailed explanation-4: -In the United States, utility companies are regulated at the state and municipal levels by public service commissions. The Federal Energy Regulatory Commission (FERC) is the U.S. government agency regulating the interstate transmission of electricity, natural gas, and oil.