Which of the following statements supports deregulation of industries ?
Correct answer: D. All of the above
- A. Technological change has made it possible for many industries to become more competitive
- B. Because few real natural monopolies exist there is rarely a reason for government regulation
- C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
- D. All of the above
Explanation
All three statements support deregulation: technology can increase competition, genuine natural monopolies are uncommon, and regulation can sometimes restrict competition. Therefore, the inclusive choice is all of the above.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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