Question

In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?

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In the middle of the 20th century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly.

This change was most likely caused by decreasing automobile prices. As cars became more affordable, the demand for public transportation decreased. Instead of supporting multiple city bus companies, it was probably in the city's best interest to consolidate these service providers into a single regulated monopoly.

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