Critics of social regulation argue that it
A)causes deflation.
B)violates the due process clause of the U.S. Constitution.
C)is a relatively greater burden for small firms than for large firms.
D)improves allocative efficiency.

Question

Quizplus · Accepted Answer

Social regulation often imposes fixed costs for compliance (such as the cost of pollution control equipment or the cost of modifying products to meet safety standards), which represent a larger proportion of a small firm's total costs compared to a large firm. This can make it more burdensome for small firms to comply with these regulations, affecting their competitiveness and profitability.

Critics of Social Regulation Argue That It