Industrial regulation generally applies in cases where
A) society would benefit if a monopoly is prevented from evolving in a certain market.
B) a monopoly already exists, and the government believes that society would benefit if it is dissolved.
C) there is an economic reason for an industry to be organized as a monopoly.
D) foreign competition in the form of imports is prevalent in the market.

Question

Quizplus · Accepted Answer

Industrial regulation is often applied when there is a natural monopoly, where it is economically efficient for a single firm to supply the entire market due to high fixed costs and economies of scale.

Industrial Regulation Generally Applies in Cases Where