The bus transit system is owned and operated by the City. Passengers are provided with a service that is coordinated and can be accessed with a common ticket, or fare. Such a system could be operated by the private sector, but public transit bus systems are ubiquitous across Canada and the United States.

(a) Draw and explain an appropriate model(s) that illustrates why private bus systems have not been allowed to operate in the cities.

(b) Explain the benefits and costs of the publicly provided system.