Municipal tap water is typically controlled and operated by a local government. This type of competition is:

Question

Quizplus · Accepted Answer

Municipal tap water is typically considered a natural monopoly because it is controlled and operated by a local government, which is the only provider of the service in the area. This means that there are high barriers to entry for other potential competitors, making it difficult to achieve pure competition or monopolistic competition. Additionally, there is typically only one provider of the service, so it does not fall under the category of an oligopoly where there are a few dominant providers in the market.

Municipal Tap Water Is Typically Controlled and Operated by a Local