Why is regulation necessary to achieve “universal service“?
What will be an ideal response?
Universal service refers to making a service available to all, even if it is unprofitable to include all customers. Regulated companies can make up losses from universal service by making above-normal profits from other products or customers. Regulation must prevent entry into these higher profit lines, or cream skimming by competitors will leave the firm offering universal service at a loss.
You might also like to view...
Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds. We should expect harder work under the __________ system and less risk taking under the __________ system
A) former; former B) former; latter C) latter; former D) latter; latter
The majority of U.S. imports and exports involve:
The aggregate supply curve is the relationship between the price level and the quantity of real GDP purchased.
Answer the following statement true (T) or false (F)
M2 + ___________ = M3.
Fill in the blank(s) with the appropriate word(s).