In a recent conversation a policy maker argued that since DEWA is monopolist, they are charging higher price and lower output is produced. He further mentioned that government should split the entire unit into small pieces so that competition can drive down prices. Do you agree with this statement? Explain your answer in few words. Provide a relevant diagram.
The question belongs to Economics, Micro-economics and it discusses about a policy maker arguing that DEWA is a monopolist which charges higher price and delivers lower output. The policy maker suggests that DEWA should be split into small pieces to bring in competition. This statement has been explained in the solution in detail.
Total Word Count 193
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