Public Utilities

Definition

Public utilities are services provided by the government or regulated companies to the public such as water, electricity, natural gas, telephone service, and other essentials.

Analogy

Think of public utilities like your school cafeteria. They provide essential services (like food) that everyone needs and uses regularly.

Related terms

Monopoly: A monopoly refers to when a single company or group owns all or nearly all of the market for a given type of product or service. It's like being the only food vendor at a music festival - you're the only option for hungry concert-goers.

Regulation: This is when government steps in to control practices and standards in business to ensure fairness and prevent harm. It’s like having rules in a board game; they keep everything fair and balanced.

Privatization: This is when services provided by the government become owned and operated by private businesses instead. Imagine if your school cafeteria was suddenly run by McDonald's - that would be privatization.