One economically valid approach to regulation is simply to break all large firms into many smaller ones.

Name: One economically valid approach to regulation is simply to break all large firms into many smaller ones.
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Question

Quizplus · Accepted Answer

Breaking up large firms may not always be an economically valid approach to regulation as it may result in higher transaction costs and reduced economies of scale. There may be other regulatory approaches that can achieve the desired outcomes more efficiently.

One Economically Valid Approach to Regulation Is Simply to Break