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Consider a local public utility, such as the water utility or scavenger company, that is regulated. Provide a diagram or graph illustrating the typical price
Consider a local public utility, such as the water utility or scavenger company, that is regulated. Provide a diagram or graph illustrating the typical price and output set by regulators. Then respond to the following questions:
- What might happen if the company was not regulated?
- To what extent does regulation lead to equilibrium price and output levels that are consistent with production and allocation efficiencies?
- Do you think the local community would be better served if the industry was no longer regulated and entry was available to any other company wanting to serve the community?
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