Which of the following statements provides the best description of one reason why regulation of an industry might not increase economic efficiency?
a. There are more employees of regulated industries than affected customers.
b. Insufficient regulator pay makes it difficult to hire effective regulators.
c. The regulated industry has stronger incentives to be involved in the regulation process than the general publi
c.
d. Regulated industries have too much economic power and can litigate away most regulation.
c
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Negative marginal revenue means that
a. the firm is maximizing its economic profit b. the firm is maximizing its total revenue c. total revenue is increasing at an increasing rate as output increases d. total revenue is increasing at a decreasing rate as output increases e. total revenue is decreasing as output increases
Government spending is an injection in the sense that it
a. increases the amount of total spending. b. increases the size of the federal deficit. c. decreases the amount of household saving. d. decreases the amount of taxes paid.