A major criticism of industrial regulation is that

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Industrial regulation, especially in the context of natural monopolies (such as utilities), often allows these entities to charge prices that enable them to cover costs and earn a fair return. This approach can reduce the incentive for these monopolies to minimize costs or operate efficiently, as their profitability is somewhat assured by the regulatory framework. This is a common criticism of such regulation, as it can lead to higher prices for consumers and less emphasis on cost containment and efficiency by the monopolies.

A Major Criticism of Industrial Regulation Is That