The PowerHouse Utility Company recently built a nuclear power plant in a southern state and started competing against BXY Utility Company that has served customers in that region for 65 years.Due to deregulation,consumers now have a choice among utility companies in this are
A.Although PowerHouse has made a sizeable capital investment,if it successfully grows market share,eventually prices for electricity may stabilize or fall.

Question

Quizplus · Accepted Answer

If PowerHouse grows its market share, it will become more efficient and may eventually be able to offer lower prices to customers, leading to price stabilization or even a decrease.

The PowerHouse Utility Company Recently Built a Nuclear Power Plant