Question

Assignment Details

You have learned that some markets are competitive but that there are also a few markets that are serviced by just one firm. Examples include utility companies that provide electricity and natural gas to homeowners.

Please draw on your own experiences and what you have learned in Unit 4 to discuss the following points. Please use economic concepts; and use references in your main contribution.

Please identify and describe your local utility.

Please explain what products or services it provides.

Are there other companies that provide these products in your community?

Have prices increased in the last 2 years? Please explain.

Do you think prices would be higher or lower if there were 2 or more providers? Please explain.

Answer 1

Good/service provided: Water provided by Delhi Jal Board in New Delhi, India

Goods offered: Water supply in all forms in the city

Any other companies: No

Have prices increased: Yes, the DJB increased prices of water consumed over and above 20,000 litre per month by 20%

If there were 2 or more providers, water prices would surely have been lower, as more number of competitors increases competition in the market and thus the competirors compete using price wars which leads to lower prices