The public interest theory of regulation
A) says that industries should be regulated to insure quality service at reasonable prices.
B) says higher costs may not be passed through to consumers.
C) protects industries from new competition.
D) guarantees higher rates for natural monopolies.

Question

Quizplus · Accepted Answer

The public interest theory of regulation states that industries should be regulated in order to ensure that they provide quality services at reasonable prices. It is focused on the protection of the consumer and the promotion of public welfare.

The Public Interest Theory of Regulation