Regulation of entry in the airline industry increased costs and reduced innovation.

Question

Quizplus · Accepted Answer

Regulation of entry in the airline industry can limit competition, which can increase costs and reduce innovation. When there are fewer new entrants to the market, existing airlines may face less pressure to improve their processes or offer better services at lower prices. Additionally, regulations such as route restrictions or price controls can also limit innovation and competition in the industry.

Regulation of Entry in the Airline Industry Increased Costs and Reduced