If increased regulation and new regulations increase the cost to businesses,

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Quizplus · Accepted Answer

Small businesses typically have fewer resources to absorb increased costs from new regulations, making it harder for them to compete with larger businesses. This can lead to small businesses being forced to close or merge with larger companies, which further consolidates power in the marketplace. In contrast, larger businesses may be able to spread out new costs more effectively or even pass them along to consumers through higher prices. There is no evidence to suggest that increased regulation would necessarily cause larger businesses to relocate overseas or only hire part-time workers.

If Increased Regulation and New Regulations Increase the Cost to Businesses