Deregulation of the trucking industry resulted in a) many more firms and lower prices b) many more firms and higher prices c) fewer firms and lower prices d) fewer firms and higher prices

Deregulation is the process of removing government interventions, restrictions, and regulations from an industry or market. Basically, it allows for increased competition, which can lead to changes in supply and demand, prices, and the number of firms operating in that industry.

When deregulation occurs, it usually leads to increased competition between firms. This is because, without government restrictions on entry, more firms can enter the market. The increased competition could potentially lead to: 1. Lower prices: Competition generally exerts a downward pressure on prices as firms try to attract customers. 2. Changes in the number of firms: An increase in competition might lead to a higher number of firms operating in the industry. It could also force some firms to exit if they are unable to adapt to the new conditions.

a) Many more firms and lower prices: This is consistent with the effects of deregulation, where increased competition can lead to both a larger number of firms and lower prices. b) Many more firms and higher prices: This is not consistent with the expected outcomes of deregulation. While it is possible that deregulation may lead to more firms, it would not typically lead to higher prices as competition would be increased. c) Fewer firms and lower prices: This option is inconsistent with the expected outcomes of deregulation. It may cause decreased prices due to competition, but not a reduction in the number of firms. d) Fewer firms and higher prices: This option is also inconsistent with the expected outcomes of deregulation. Increased competition from deregulation would not be expected to cause a reduction in the number of firms and higher prices simultaneously.

Based on the analysis, option (a) many more firms and lower prices best describes the outcome of deregulation in the trucking industry, as it aligns with the expected results of increased competition generated by deregulation.