Which of the Following Best Explains Why Increased Regulations Cannot

question 87

Multiple Choice

Which of the following best explains why increased regulations cannot be the complete solution to reforming the economy?

• A) The regulators are all corrupt.
• B) It is extremely difficult to write regulations.
• C) There are too many transactions to keep track of.
• D) There are too many regulations to keep track of.

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Definitions:

Short Run

A period of time during which at least one input of production is fixed, limiting the ability of a firm to adjust its output levels fully.

Product Price

The amount of money required to purchase a specific product or service at a given time.

Minimum Average Total Cost

The lowest point on the average total cost curve, representing the least cost per unit at which a firm can produce any given level of output.

Perfectly Competitive Firm

A firm operating in a market where there are many sellers and buyers, the product is homogeneous, and there are no barriers to entry or exit.