Which of the following best describes Canadian public utilities?
A) They are often perfect competitors.
B) They are often employee-owned public enterprises.
C) They are often created through patent protection.
D) They are often regulated natural monopolies.

Question

Quizplus · Accepted Answer

Canadian public utilities are often regulated natural monopolies. This means that due to high fixed costs, it would not be efficient to have multiple firms competing in the same industry, and therefore these industries are regulated to prevent abuse of monopoly power. Examples of Canadian public utilities include electricity, gas, and water services.

Which of the Following Best Describes Canadian Public Utilities