Question

What about monopolies: for some of us, we still live in areas where there is NO competition for basic, necessary services (which are not luxuries, or for that matter, choices) such as water, and as such, we are at "the mercy" of these companies that do provide the service.

Answer 1

Yes, it is absolutely unethical and incorrect to have such monopolies in areas which are required by people everyday. This increases the amount to be given to avail these services and lack of competition increases the hold of that company hence bargaining power of customer decreases which is not a good sign as far as perfect competition is concerned. Government should pitch in such circumstances and ensure that citizens are not harassed by these companies because of lack of competition. We actually start living on the mercy of these companies and this definitely does not increase the status of the society which is to be taken care by the government and financial caretakers of the nation.