An argument supporting regulation is that the only way to increase production of public goods to meet the real demand of the public is through regulatory intervention.

Question

Quizplus · Accepted Answer

Public goods are those goods that are necessary for the public, but the private sector cannot produce them efficiently or effectively. The demand for public goods is high, but the supply is low due to market failure. In such a scenario, regulatory intervention is the only way to increase production of public goods to meet the real demand of the public. Without regulation, the private sector may not invest in such goods, or may not produce them efficiently, leading to a shortage of essential goods and services for the public.

An Argument Supporting Regulation Is That the Only Way to Increase