All of the costs associated with regulation are borne by the firms being regulated.

Question

Quizplus · Accepted Answer

While regulated firms do bear some of the costs of complying with regulations, the costs of implementing and enforcing regulations are also funded by taxpayers and fees collected by regulatory agencies. Additionally, there may be indirect costs passed on to consumers in the form of higher prices due to increased compliance costs for businesses.

All of the Costs Associated with Regulation Are Borne by the Firms