Deregulation improves the allocation of resources by:

Question

Quizplus · Accepted Answer

Deregulation allows low-cost, innovative firms to enter the market, leading to more competition and a more efficient allocation of resources. Option A is incorrect because deregulation does not necessarily allocate more resources to firms; instead, it enhances the market's competitiveness. Option B is incorrect because fewer firms do not always mean better resource allocation. Option D is incorrect because creating more market opportunities for firms does not directly improve resource allocation.

Deregulation Improves the Allocation of Resources By