If government regulations significantly increase the cost of operating within a particular market, one result is that

Question

Quizplus · Accepted Answer

When government regulations increase the cost of operating in a market, it becomes more difficult for new firms to enter the market, as they may not have the resources to comply with the regulations. This results in existing firms having less competition and market power. Therefore, A is the correct answer as new firms are discouraged from entering the market.

If Government Regulations Significantly Increase the Cost of Operating Within