Economic regulation aims to control the price,output,the entry of new firms,and the quality of service in industries in which monopoly appears inevitable or even desirable.

Question

Quizplus · Accepted Answer

Economic regulation is designed to mitigate the negative effects of monopoly power, which can manifest in high prices, low output, and poor quality of service. By controlling aspects such as entry barriers and price setting, regulators can ensure that monopolies do not abuse their market power to the detriment of consumers.

Economic Regulation Aims to Control the Price,output,the Entry of New