You read the Electricity City Utility Company has problems. Its headquarters had an expansive retaining wall collapse during a flood last week. This led to toxic coal ash flows that buried homes and even caused a few fatalities. An editorial claims that the company will not be held accountable to the same standards as the asbestos companies that paid severe fines and even went out of business due to their lack of attention to environmental clean-up. You agree with the writer because you recently studied about the various competitive markets and utility companies clearly fall under monopolistic competition.

Question

Quizplus · Accepted Answer

Utility companies are considered regional monopolies. The U.S. legal system has permitted monopolies in the markets for public utilities that sell natural gas, water, and electric power. As is often the case, when there is only one company serving a wide area, consumers do not have a choice, and the firms are not as eager to maintain their capital investments.

You Read the Electricity City Utility Company Has Problems