We've all seen advertisements from our local utilities provider. Since the utility company (e.g....

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We've all seen advertisements from our local utilities provider. Since the utility company (e.g. PWC, South River, Duke Energy) is a regulated monopoly, about what is the company advertising and why?

David · Accepted Answer

We've all seen advertisements from our local utilities provider. Since the utility company 
(e.g. PWC, South River, Duke Energy) is a regulated monopoly, about what is the company 
advertising and why?
Natural Monopoly, as economic theory suggest, refers to the industry where the production can 
be done at the cost cheaper cost than by multiple firms. The public utilities are mostly 
characterized by natural monopoly –It is cost efficient for a single company to provide the utility 
service at a particular geographical market. The utility service offered by multiple companies is 
inefficient and expensive.

We've all seen advertisements from our local utilities provider. Since the utility company (e.g. PWC, South River, Duke Energy) is a regulated monopoly, about what is the company advertising and why?

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