Critics of industrial regulation say that such regulation

Question

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Industrial regulation is aimed at regulating industries that exhibit natural monopolies to promote competition, protect consumers, and promote efficiency. However, critics argue that regulation could perpetuate monopolies long after new technology has eroded the natural monopoly. This is because regulation allows existing firms to maintain their dominant position by setting entry barriers that prevent new firms from entering the market. This undermines the competitive market's ability to allocate resources efficiently and protect consumers from exploitation.

Critics of Industrial Regulation Say That Such Regulation