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.
D) increase competition within the market.

Question

Quizplus · Accepted Answer

Economic regulation aims to simulate the outcomes of a competitive market, even in industries that may not naturally have a competitive structure. The purpose is to promote efficiency, pricing accuracy, and prevent abusive market power, but without the drastic and usually unsustainable measures of replacing competition with government ownership. Protecting monopoly profits or increasing competition within the market are not the goals of economic regulation, per se.

The Task of Economic Regulation Is To