Regarding the provision of a public utility like water,
A)many small firms can deliver the water to households most efficiently.
B)a state-owned firm can deliver the water to households most efficiently.
C)two firms can deliver the water to households most efficiently.
D)a few large firms can deliver the water to households most efficiently.
E)one firm can deliver the water to households most efficiently.

Question

Quizplus · Accepted Answer

The provision of a public utility like water is best delivered by one firm as it eliminates duplication of resources and ensures efficient use of fixed resources like water treatment plants and distribution networks. Having multiple firms can lead to duplicated effort and inefficiencies. A large, state-owned firm can also be effective in delivering this service, but if it is well-managed, a single private firm can also do the job well.

Regarding the Provision of a Public Utility Like Water