Which of the Following Is Not a Rationale for Regulation

question 22

Multiple Choice

Which of the following is not a rationale for regulation?

• A) To redress the inequality of access to information by users
• B) To protect users from fraudulent activities of insiders
• C) To reduce the oversupply of information caused by excess user demand, because users do not have to pay for its cost
• D) To enhance consistency and comparability of use of accounting methods

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Definitions:

Demand Schedule

A table that shows the quantity of goods or services that consumers are willing and able to purchase at various price levels.

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, homogenous products, and no barriers to entry or exit.

Duopoly Market

A market structure dominated by only two producers or sellers, leading to a form of competition that significantly impacts pricing and output decisions.

Merging Firms

The process where two or more companies combine into a single company, often to expand market share, reduce costs, or increase competitiveness.