In the long run, interconnection in network industries leads to a _____ level of competition and _____ efficiency.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower

Question

Quizplus · Accepted Answer

Interconnection in network industries, such as telecommunications, energy, and transportation, typically leads to a higher level of competition as it allows more firms to participate in the market. This increased competition often results in higher efficiency, as firms strive to innovate and reduce costs to attract and retain customers.

In the Long Run, Interconnection in Network Industries Leads to a _____