Consider a local public utility, such as the water utility or scavenger

company, that is regulated. Provide a diagram or graph illustrating the typical price and output set by regulators. Then respond to the following questions:

-What might happen if the company was not regulated?
-To what extent does regulation lead to equilibrium price and output levels that are consistent with production and allocation efficiencies?
-Do you think the local community would be better served if the industry was no longer regulated and entry was available to any other company wanting to serve the community?