In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?
Correct answer: B. making markets contestable
- A. deregulation
- B. making markets contestable
- C. natural monopoly.
- D. cross-subsidization.
Explanation
Allowing firms from one utility industry to enter another makes the market open to potential competitors, which is the idea of contestability. Deregulation may enable this process, but the specific description refers to making markets contestable.
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