A regulatory disadvantage is increased prices resulting from a reduction in a seller's "informational market power."

Question

Quizplus · Accepted Answer

A regulatory disadvantage typically refers to the burdens or costs imposed on businesses due to regulation, not to the benefits such as reduced prices from diminishing a seller's informational market power. Reducing a seller's informational market power can lead to more competitive pricing and better-informed consumers, which is generally seen as an advantage or benefit of regulation.

A Regulatory Disadvantage Is Increased Prices Resulting from a Reduction