Public utilities
A)are primarily regulated natural monopolies.
B)are competitive firms.
C)experience only insignificant economies of scale in production.
D)are seldom regulateD.

Question

Quizplus · Accepted Answer

Public utilities are typically natural monopolies, meaning that it is more efficient to have one provider of the service due to large economies of scale. However, because they are natural monopolies and often provide essential services like water and electricity, they are heavily regulated by government agencies to prevent abuse of power and ensure affordability for consumers.

Public Utilities