The Public Interest Theory of Industrial Regulation Contends That

question 240

Multiple Choice

The public interest theory of industrial regulation contends that

• A)while industrial regulation is sound in theory, bureaucrats allow monopolists to obtain excessive profits.
• B)regulated monopolies are tantamount to legal cartels.
• C)the objective of regulation is to protect the public from the market power inherent in natural monopolies.
• D)firms in some industries want to be regulated.

---

Definitions:

Functional Conflict

Functional conflict is a healthy, constructive disagreement between two or more individuals or groups that leads to improved decision-making or outcomes.

Culture on Behavior

Culture on Behavior examines how the shared values, norms, and practices within a culture influence the behaviors of its members.

Dysfunctional Conflict

A disagreement or conflict that leads to negative outcomes, hindering organizational performance and goals.

Group Cohesion

Group cohesion refers to the bonds that hold group members together, affecting their willingness to cooperate and their sense of unity.