Microeconomics

Restructuring of the natural gas industry has essentially made it a co

Restructuring of the natural gas industry has essentially made it a competitive industry. Indicate whether the statement is true or false   ANSWER F Not quite. Existing pipelines can still keep capacity low in some areas and elevate price, but the industry can operate more efficiently under the restructuring.  

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Date: September 9th, 2020

“Stranded costs” complicated restructuring in the electricity industry

“Stranded costs” complicated restructuring in the electricity industry. Indicate whether the statement is true or false   ANSWER T In many areas, introducing competition lowered the value of assets by an amount called stranded costs, and owners of those assets—who had constructed them in good faith under different regulatory rules—wanted compensation for the loss.  

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Date: September 9th, 2020