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.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.10P

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