One reason regulators push for higher prices in an industry is to
A)prevent excess profits in the industry.
B)protect the public from excessively low prices.
C)encourage usage of the good or service.
D)protect against the demise of existing firms.

Question

Quizplus · Accepted Answer

Regulators may push for higher prices in an industry to protect against the demise of existing firms. This can help ensure stability within the industry, maintain competition, and prevent monopolies or situations where too few firms dominate the market. Higher prices can provide firms with the necessary revenue to cover costs, invest in improvements, and stay viable in the long term.

One Reason Regulators Push for Higher Prices in an Industry