Deregulation _____.

Question

Deregulation _____.

Quizplus · Accepted Answer

Deregulation typically leads to lower prices as competition increases and companies are allowed to operate more freely without as many restrictions or regulations. However, it could also lead to an increase in monopolistic tendencies if certain companies gain too much power or control in the market. Deregulation may disrupt current competitive activities and may lead to an increase in government involvement as new regulations and policies may need to be put in place to ensure fairness and protect consumers. Nonetheless, the overall effect of deregulation is often seen as increasing competition and lowering prices.