Why Did Congress Begin to Adopt National Business Regulations

question 18

Multiple Choice

Why did Congress begin to adopt national business regulations?

• A)They wanted to increase the amount of money that the government earns from monopolies.
• B)They thought that government-sponsored monopolies were the best way to provide services to consumers in most industries.
• C)They wanted to alleviate the burdens that companies faced in adapting to the regulatory inconsistencies across states.
• D)They wanted to encourage the development of an automotive industry that would strengthen America's position in the world economy.
• E)Occasional bubbles,fostered by regulation,are actually a healthy part of a market economy.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor.

Marginal Cost

The incremental cost involved in creating an extra unit of a product or service.

Diseconomies of Scale

Occur when a firm's costs per unit increase as its output increases, opposite to economies of scale.