Question
Read the article FCC made a case for limiting cost of prison phone calls. Not anymore. https://www.washingtonpost.com/local/public-safety/fcc-made-a-case-for-limiting-cost-of-prison-phone-calls-not-anymore/2017/02/04/9306fbf8-e97c-11e6-b82f-687d6e6a3e7c_story.html?utm_term=.f31d6ae73756Links to an external site. 1. The article lists
Read the article "FCC made a case for limiting cost of prison phone calls. Not anymore."
https://www.washingtonpost.com/local/public-safety/fcc-made-a-case-for-limiting-cost-of-prison-phone-calls-not-anymore/2017/02/04/9306fbf8-e97c-11e6-b82f-687d6e6a3e7c_story.html?utm_term=.f31d6ae73756Links to an external site.
1. The article lists 3 companies that provide prison calls. Is the market for prison calls a monopoly: How can the market be a monopoly when there's more than one provider?
2. Why does Chairwoman Clyburn claim there's an "egregious case of market failure" because of lack of competition?
3. The article states that the "shared funds...help pay for inmate programs". One person states that family members of those in prison shouldn't subsidize local governments. How would you model this in supply and demand for government services? If the prisons didn't get some of the money from calls, what would this mean?
4.If you eliminated the payments to prisons and increased competition, do you think the prices families pay to call inmates would drop to the same level that people who aren't in prison pay? Why or why not?
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