Asked by Hayden Brown on Apr 30, 2024
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Suppose the transportation industry has been regulated for many years.Government now proposes to deregulate the industry,only to find that firms in the industry oppose this action.This is consistent with the:
A) public interest theory of regulation.
B) theory of natural monopolies.
C) legal cartel theory of regulation.
D) Alcoa and U.S.Steel court decisions.
Legal Cartel Theory
The concept that under specific regulatory frameworks, cartels may operate legally, typically in industries subject to intense regulation for public interest.
Natural Monopolies
Industries where a single firm can supply a product or service at a lower cost than any potential competitor, often due to economies of scale.
Deregulate
The process of removing or reducing government regulations or restrictions in an industry to allow for more freedom and competition.
- Understand the concepts and theories surrounding industrial regulation and deregulation.
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Learning Objectives
- Understand the concepts and theories surrounding industrial regulation and deregulation.
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