When market outcomes improve after government regulation is enforced,

Question

Quizplus · Accepted Answer

While it may be true that market outcomes improve after government regulation is enforced, it does not necessarily mean that the net effect of government intervention on society is definitely beneficial. There may still be economic costs associated with regulation, such as compliance and enforcement costs, that may outweigh the benefits. Therefore, government intervention may not be justified if the economic costs are too high, even if allocative efficiency is achieved.

When Market Outcomes Improve After Government Regulation Is Enforced