One reason that governments may intervene in the operation of a business through regulation is to:
A)increase monopoly profits.
B)reduce the amount of information consumers have about a product.
C)increase negative externalities.
D)promote competitive behavior.
E)decrease positive externalities.

Question

Quizplus · Accepted Answer

Governments may intervene to promote competitive behavior in the market and prevent the emergence of monopolies, which can harm competition and lead to higher prices for consumers. Through regulations that promote fair competition and prevent anti-competitive practices like price-fixing or collusion, the government can help ensure a level playing field for businesses and consumers.

One Reason That Governments May Intervene in the Operation of a Business