Government regulation of a firm could be justified on the grounds that:

Question

Quizplus · Accepted Answer

All the options provided justify government regulation of a firm. A) Public well-being is a common reason for regulation, especially if the product has significant health, safety, or environmental impacts. B) In cases where it's more efficient to have a single provider (such as utilities), government regulation can ensure fair access and prices. C) Natural monopolies, which occur when a single firm can supply a good or service to an entire market at a lower cost than could two or more firms, often require regulation to prevent abuse of monopoly power.

Government Regulation of a Firm Could Be Justified on the Grounds