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Public Utilities
Services provided to the general population by the…
Public Utilities
Services provided to the general population by the government or state.
Advantages
These utilities will owned and controlled solely by the government. Thus, the services will always favor the general population as their aim is to promote social welfare.
Furthermore, as the government is incentivized to maximize social welfare, these utilities will often be of high quality.
Utilities are not necessarily costly as these services are often funded by tax revenue - which can be a low percentage of a person's income or by price of the service. Moreover, these services are directly provided between the general population and the government. Therefore, the prices of these utilities are often unappreciated in price.
Utilities are equal in both quality and quantity as the responsibility of providing such utilities falls to the government - who look at the population as a whole. There will be no discrimination between minorities or areas of the population.
The government will solely provide these utilities (making it a monopoly of the market). Thus, there will be no disruption in the services as there is no competition that can drastically alter the price and method in which this system operates.
This approach constantly and systematically earns revenue in the form of taxation. Therefore, services are not easily disrupted due to the lack of funding to support this approach.
Moreover, this approach is easily funded due to the government's / state's ability to access national funds.
Since the government easily obtains legal operation licenses, new systems can easily be implemented, making utilities more readily available and accessible.
Disadvantages
Since the government / state consists of a large hierarchy, changes and decisions regarding the supplying of these utilities may take some time before they are properly implemented.
The government / state is prone to political interference. This may lead to disruptions in the efficiency of the utility system; it may also lead to quality disparity as certain populations may be favored. Any disruptions in the government, for that matter, can reduce the efficiency of the utility.
When the government monopolizes the public utility sector, there isn't enough competition to ensure that these services be provided efficiently, let alone be of high quality, as there are no alternatives. This also means that the general population may not be provided with choices that best suit their desired service.
In order for all utilities to be provided by a single entity: the government, a lot of capital is required. Thus, this could be ineffective cost-wise. This can result in greater taxation of the working population.
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Stakeholders
General population
They desire services that are necessary in their daily activities to be supplied efficiently as at a low cost since they can spend large portions of their disposable income on it.
Government
In utilities, their main aim is to ensure that the entire population is able to access these high quality services at a low cost in order to maximize social welfare.
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Conclusion
As the advantages of utilities provided publicly matches the interests of the stakeholders in this scenario, it is certainly the best approach. The disadvantages can easily be resolved