Asked by Eboni Warren on Apr 30, 2024
Verified
Critics of industrial regulation say that such regulation:
A) benefits small firms at the expense of large firms.
B) perpetuates monopoly long after new technology has eroded natural monopoly.
C) creates insurmountable principal-agent problems.
D) has resulted mainly from the paradox of voting.
Paradox of Voting
The situation where individual rationality leads to a collective decision that is worse for everyone involved.
Principal-agent Problems
Situations where there is a conflict of interest between a principal (such as an owner or shareholder) and an agent (such as a manager), due to diverging goals or asymmetrical information.
Industrial Regulation
Government rules and regulations aimed at controlling the activities, standards, and behaviors within specific industries to ensure fairness, safety, and competition.
- Develop an understanding of the purposes and perceived gains of regulatory practices in social and industrial fields.
- Acquire insight into the critiques of regulatory policies.
Verified Answer
Learning Objectives
- Develop an understanding of the purposes and perceived gains of regulatory practices in social and industrial fields.
- Acquire insight into the critiques of regulatory policies.
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