Final answer:
Utilities can use technology advancements to address the limitations of natural monopolies. Innovation could enable more efficient management and equitable resource distribution, potentially through mathematical modeling and redefining sustainable consumption practices.
Step-by-step explanation:
Public utilities, such as water and electricity providers, function as examples of natural monopolies due to the high infrastructure costs and inefficiencies associated with having multiple competing networks. To address the inherent challenges of natural monopolies and improve utility services, a utility could adopt a business model that leverages advancements in technology. As seen in the telecommunications industry, the shift from wired to wireless transmission facilitated the end of monopolies such as AT&T's control over long-distance service.
By utilizing innovative technologies, utilities can enhance resource management, making it feasible to support a larger population more efficiently. For instance, mathematical models in resource distribution and cost calculation could be developed to ensure fairer distribution and cost-effective services, aligning with available technologies and societal needs.
Utilities may remedy discrepancies in their business model through options such as:
- Using technology to improve resource management.
- Adapting consumption patterns to be more sustainable.
- Ensuring fair distribution of resources globally.
These strategies could help overcome the limitations of a natural monopoly while meeting the expectations of convenience and reliability.