Which regulatory cost is borne by the firms that are regulated?

Question

Quizplus · Accepted Answer

Compliance costs refer to the expenses that firms incur in order to comply with regulations. These costs are borne by the regulated firms themselves. Efficiency costs refer to the costs associated with reduced efficiency caused by regulations, and subsidy costs refer to the expenses associated with providing financial assistance to firms in order to comply with regulations, neither of which are borne by the regulated firms.

Which Regulatory Cost Is Borne by the Firms That Are