Which of the following arguments supports the view that regulation is not necessary,particularly to the extent that it currently exists?
A) Accounting information is like any other good and people will be prepared to pay for it to the extent that it has use
B) Markets for information are not efficient and therefore produce a sub optimum amount of information, given the problem of "free riders"
C) Investors need protection from fraudulent organisations that may produce misleading information
D) Information asymmetry exists because not everyone has the same power over resources to obtain the information they need

Question

Quizplus · Accepted Answer

This argument suggests that the market will regulate itself and individuals will only pay for accounting information that they find useful. Therefore, there is no need for government regulation to ensure that accounting information is provided.

Which of the Following Arguments Supports the View That Regulation