What is the primary goal of deregulation?

The primary goal of deregulation is to enhance the efficiency of industries by removing constraints on market forces. Deregulation aims to reduce government intervention in various sectors, allowing market forces to dictate pricing, production, and competition. By removing regulatory barriers, firms are often free to innovate, reduce costs, and respond more rapidly to consumer demands, which can lead to improved efficiency and greater consumer choice.

In deregulated markets, competition tends to increase as new entrants can join the market more easily, potentially leading to lower prices and improved services for consumers. This shift allows the market to function more effectively as a mechanism for resource allocation based on supply and demand rather than bureaucratic processes.

The other options present alternative views that do not align with the main objectives of deregulation. Increasing government oversight implies more regulation rather than less, which contradicts the essence of deregulation. Monopolizing market practices suggests a move toward less competition and more control by a few firms, while deregulation typically seeks to foster competition by breaking down monopolistic practices. Finally, decreasing competition runs counter to the intended outcome of deregulation, which is generally to increase competitive dynamics within industries.