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- Subject
- Applied Microeconomicseconomics-mcqs › applied-microeconomics
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
In country X, consumers can now purchase electricity from a gas provider and gas from an electricity supplier. What is this practice known as?
Multiple choice question for Applied Microeconomics. Select an option, then review the explanation below.
Explanation
Option B is correct because allowing consumers to buy electricity from gas companies and gas from electricity companies promotes competition by making markets contestable. This differs from deregulation, which refers to reducing government controls, and other options like natural monopoly or cross-subsidization, which do not describe this scenario.
More Applied Microeconomics MCQs
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- 5.What type of merger involves companies that operate in completely different industries?