If a City Owns and Operates the Local Electricity Utility

question 228

Multiple Choice

If a city owns and operates the local electricity utility where price equals marginal cost,one can infer that

• A) some fraction of the tax revenue raised by the city will pay for the losses of the electricity utility.
• B) service will,necessarily,be poor.
• C) the utility will generate "profit" for the city.
• D) service will,necessarily,be good.
• E) electricity prices will rise more quickly when compared to private ownership.

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Definitions:

Certain Conditions

A phrase often used to specify that something is subject to one or more unspecified limitations or requirements.

Cross-cultural

Pertaining to or comparing the cultural dynamics, practices, or interactions between individuals from different cultural backgrounds.

Work Decisions

Choices or judgments made related to aspects of one's professional life, including job selection, career paths, and task prioritization.

High Power Distance

A cultural dimension where there is acceptance of unequal distribution of power among members of a society or organization.