This is the lie that people trot out to explain the myriad failures of American government. Our schools suck because they’re “underfunded.” Oh, actually, they’re among the best funded: https://images.app.goo.gl/r4QwEWefuP34DZSj8. Our public transit sucks because it’s “underfunded.” Oh, the New York Subway receives far more public funding than say London’s tube: https://nypost.com/2018/11/06/the-cure-for-new-yorks-ailing-.... If California could build HSR for what it costs France, half the line would already be done for the $6 billion already spent. There isn’t a failure of government that can’t be explained away by lying about its funding levels.
You can't just use this as a blanket defense. There are plenty of inept and corrupt local governments that are well-funded as well.
> There are numerous examples of industries and market sectors where a public option coexists with market options
It's not rightfully a "public option" if one of those is funded by taxpayer money and is capable of operating at a loss, whereas the private ones have to sustain themselves.
Also, municipal broadband or publicly owned broadband would not, on its own, confer a monopoly. There are numerous examples of industries and market sectors where a public option coexists with market options. This is commonly seen as the most likely solution to the healthcare crisis in the United States today.