The public interest theory of regulation
A)says that industries should be regulated to insure quality service at reasonable prices.
B)says higher costs may not be passed through to consumers.
C)protects industries from new competition.
D)guarantees higher rates for natural monopolies.

Question

Quizplus · Accepted Answer

The public interest theory of regulation posits that regulation is supplied in response to the demand of the public for the correction of inefficient or inequitable market practices. It suggests that the purpose of regulation is to protect and benefit the public at large by ensuring quality service at reasonable prices, rather than to serve the interests of the industries.

The Public Interest Theory of Regulation