The argument against competition based on natural monopoly is questioned. A true natural monopolist needs no protection. Rapid product innovation and technical advance render the telecommunications industry not a natural monopolist.Telephones may involve two sources of external benefits:...

The pricing and investment policies of a public enterprise should be designed to achieve efficiency since equity is better pursued by general policy regarding income distribution. Short-run marginal-cost pricing does not generally lead to long-term deficit, but may involve price and...