In the context of regulatory environment,overregulation would result in the:
A)increase in entry of new competitors.
B)decrease of inflationary pressures.
C)increase in market attractiveness.
D)protection of inefficiencies.

Question

Quizplus · Accepted Answer

Overregulation would result in the protection of inefficiencies as companies would not be forced to innovate or improve their processes, products or services to remain competitive, leading to inefficiencies in the market. It would also lead to a decrease in the entry of new competitors as the regulatory environment would be too burdensome for them to comply, limiting market competition and potentially resulting in monopolistic behavior. Overregulation would not result in an increase in market attractiveness or a decrease of inflationary pressures.

In the Context of Regulatory Environment,overregulation Would Result in The