As you scan the national news online, you read about the BXY Utility Company's latest problems. The story describes an expansive retaining wall that collapsed during a flood last week, spewing toxic coal ash, burying homes, and causing a few fatalities. An editorial claims that the company will not be held accountable to the same standards as the asbestos companies of a few years back 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 typically operate in a monopoly or oligopoly market structure, not monopolistic competition. Monopolistic competition involves many firms with differentiated products, whereas utility companies often have little to no competition in their specific service areas.

As You Scan the National News Online, You Read About