What are the problems associated with price regulation?
What will be an ideal response?
The main problem with price regulation is that it reduces firms' incentive to minimize costs because with price regulation a firm is guaranteed to make zero economic profits. Another problem associated with price regulation is that because firms earn fewer profits, the incentive to innovate and produce new goods and services is greatly reduced.
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The type of unemployment most likely to be experienced by a touring professional golfer is: a. frictional unemployment
b. structural unemployment. c. seasonal unemployment. d. cyclical unemployment. e. discouraged-worker unemployment.
What is the difference between Nominal GDP and Real GDP?
a. Real GDP is a figure adjusted for exchange rate differences among countries. b. Real GDP is a figure adjusted for inflation. c. There is no difference at all. Real GDP is a synonym for Nominal GDP. d. Real GDP measures goods and services produced within a nation's borders, and nominal GDP measures goods and services produced by domestic resources anywhere in the world e. Nominal GDP is a better measure of a nation's economic health (i.e., standard of living) than Real GDP.