Problem
1. Why is an electric company in a city often considered to be a natural monopoly? What would happen if two competing electric companies were established? How about telephone companies? How can changes in technology affect your answer?
2. Suppose that a 20 percent cut in the price of coastto-coast telephone calls brings in so much new business that it permits a long-distance telephone company to cut its charges for service from Chicago to St. Louis, but only by 2 percent. In your opinion, is this practice equitable? Is it a good idea or a bad one?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.