Assume you work for a local municipality. Under what conditions is it tax advantageous for municipalities to undertake profit-making ventures? Why don’t we see more municipality-operated activities?...

Assume you work for a local municipality. Under what conditions is it tax advantageous for municipalities to undertake profit-making ventures? Why don’t we see more municipality-operated activities? Can you think of some taxable business ventures currently operated by municipalities? Would the same arguments apply to other tax-exempt entities such as universities, hospitals, and charities?