The argument in favor of regulation for natural monopolies, externalities, and cases of imperfect information is:

Question

Quizplus · Accepted Answer

Regulation is needed in cases of natural monopolies, externalities, and imperfect information because these are examples of market failures, which occur when the market fails to allocate resources efficiently. In these cases, regulation is required to ensure that resources are allocated efficiently and that there is no market power abuse or negative externalities that harm society.

The Argument in Favor of Regulation for Natural Monopolies, Externalities