The public interest theory of industrial regulation contends that

Question

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The public interest theory of industrial regulation suggests that the objective of regulation is to protect the public interest from the market power that natural monopolies hold. This means that regulation aims to ensure that natural monopolies do not abuse their market power and charge excessive prices, while also promoting fair competition in the market. This theory recognizes that regulation is necessary to correct market failures that lead to insufficient competition and consumer welfare.

The Public Interest Theory of Industrial Regulation Contends That