The economic policy of deregulation is aimed at encouraging?

Deregulation is an economic policy aimed at removing or reducing government regulations and restrictions in a particular industry or sector. The main goal of deregulation is to encourage competition within the industry, which should lead to lower prices, greater efficiency, and innovation. By reducing the barriers to entry, deregulation aims to make it easier for new businesses to enter the market and compete with existing firms. In a competitive market structure, firms must constantly strive to improve their products and services to attract and retain customers. This leads to greater efficiency and innovation, which benefits both consumers and the economy as a whole. Therefore, the economic policy of deregulation is aimed at encouraging a competitive market structure.