Why is regulation necessary to achieve "universal service"?
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.
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Spending programs that substantially alter the composition of aggregate demand will tend to
a. decrease the rate of unemployment. b. increase the rate of unemployment. c. promote a more rapid recovery. d. reduce structural unemployment.
If supply of a product increases and demand for the product decreases, equilibrium price will definitely change.
Answer the following statement true (T) or false (F)