Please state if the following sentences concerning the regulation of the electricity sector are true or false. a) In a reasonably large electricity market, it is efficient to let electricity generators compete to sell electricity on the wholesale market. b) In a liberalized electricity market the regulator has no influence on the final electricity price paid by consumers. c) The cost function of the electricity transmission grid is such that the marginal cost is always lower than the average cost for the relevant size of the market.
Please state if the following sentences concerning the regulation of the electricity sector are true or false. a) In a reasonably large electricity market, it is efficient to let electricity generators compete to sell electricity on the wholesale market. b) In a liberalized electricity market the regulator has no influence on the final electricity price paid by consumers. c) The cost function of the electricity transmission grid is such that the marginal cost is always lower than the average cost for the relevant size of the market.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.10P
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