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Explanation:
Summary: This article talks about the only public transportation system/company currently allowed operating in Utah. UTA (Utah Transit Authority) is a private company with its own board of directors that handle the companies operations. This article presents several issues that arise from having just one company allowed to operate and the people hurt are the customers. This article explains a real-world example of the problems consumers and companies have in running a monopoly. One of the arguments the article explains is the high price to riding the bus. The graphs show us that this is the case with all monopolies because they are price setters. Companies that are sole producers like UTA is can set the prices that will cover their total costs (fixed and variable). The reason for this the article explains is that the current local laws prohibit any sort of competition. The reasons explained above give reason the lowering of customers using public transportation, thus a downward sloping curve leading to quantity demanded decreasing so the price will continue to increase to cover the costs the firm has.