Critics of industrial regulation say that such regulation:
A. contributes to X-inefficiency.
B. benefits small firms at the expense of large firms.
C. creates insurmountable principal-agent problems.
D. suffers from the free-rider problem.
Answer: A
Economics
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Refer to Figure 15-13. From the monopoly graph above, identify the area representing the deadweight loss
Would the deadweight loss be larger if the demand curve was more elastic or less elastic? What will be an ideal response?
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In an open economy, an increase in savings because of concerns about the future should cause the domestic real interest rate to ________ and should cause net exports to ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Economics