![]() ![]() This school of thought holds that the most cost-efficient way of doing business is through a single firm because these are capital-intensive businesses with unusually large economies of scale and high fixed costs associated with building and operating the infrastructure, e.g. Public utilities have historically been considered to be a natural monopoly. Of these, wind turbines and solar panels are those used most frequently. Modern public utilities may also be partially (or completely) sourced from clean and renewable energy in order to produce sustainable electricity. Other companies specialize in one specific product, such as water. Some, especially large companies, offer multiple products, such as electricity and natural gas. There are many different types of public utilities. In other words, these industries are characterized by economies of scale in production. If the infrastructure already exists in a given area, minimal benefit is gained through competing. The transmission lines used in the transportation of electricity, or natural gas pipelines, have natural monopoly characteristics. Public utilities are meant to supply goods/services that are considered essential water, gas, electricity, telephone, and other communication systems represent much of the public utility market. Public utilities are subject to forms of public control and regulation ranging from local community-based groups to statewide government monopolies. A public utility company (usually just utility) is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |