Suppose you are a plumber and plumbers are not required to be licensed.A government official proposes to license plumbers,with practicing plumbers automatically receiving a license.Under the proposal,new plumbers would have to pass a challenging test in order to receive a license.If the proposed law passes,you can expect
A)plumbing errors to become a thing of the past.
B)much additional competition as new entry occurs.
C)increased respect for your profession.
D)greater market power and less competition.
E)lower prices for plumbing services.

Question

Quizplus · Accepted Answer

Licensing typically restricts entry into a profession, reducing competition and potentially increasing market power for existing practitioners, which can lead to higher prices and less competition.

Suppose You Are a Plumber and Plumbers Are Not Required