The benefits from regulation according to public interest theory go to and from

Question

The benefits from regulation according to public interest theory go to and from regulation according to capture theory they go to a the entire economy; producers b. cohesive interest groups; consumers c. everyone not in the cohesive interest group; government. d.It is impossible to determine who benefits; the general public Regulation consists of government rules that influence a. prices. b. product standards and types c. conditions under which new firms may enter an industry. d. All of the above answers are correct. The task of economic regulation is to a. protect monopoly profits. b. approximate the results of the competitive market. c. replace competition with government ownership and control. d. ensure laissez faire The agreement between manufacturers and distributors in which manufacturers who do refuse the pricing suggestion are nct able to sell their products is whereas if a distributor prevents all of its retail outlets from selling any other competing soft drink, it is engaged in e. a. resale price maintenance; an exclusive deal f b. an interlocking dealership chain; a tying agreement. c. always inefficient, territorial confinement a tying arrangement, a requirement contracts

Explanation / Answer

1. The benefits of regulation according to public interest theory goes to the entire economy and from regulation according to capture theory they go to producers. Catch hypothesis is a procedure by which administrative offices in the end come to be overwhelmed by the very businesses they were accused of managing. While Public premium hypothesis is a financial hypothesis initially created by Arthur Cecil Pigou that holds that direction is provided because of the request of general society for the revision of wasteful or unjust market hones.

2. Regulation consists of government rules that influence prices, product standard and types and the conditions under which new firms may enter an industry. Thus all the above mentioned options are correct.

3. The task of economic regulation is to replace competetion with government ownership and control. It is the use of law by government or free managerial offices for different purposes, including helping market disappointment, ensuring the earth, midway arranging an economy, advancing very much associated firms, or profiting legislators.

4. The correct option is (d) always inefficient , territorial confinement. This is because if manufacturers refuse pricing suggestions, then will not be able to sell their products efficiently. While preventing other category sale of products helps to confine their territory.

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