Share
Explore BrainMass

Economics of Regulation

Economics of regulation, or economic regulation, describes the actions that governments take to manage how firms and individuals behave in the private sector. Types of economic regulation include improving market failure and equity interests in private companies.

The central tasks of the government include deciding who will receive the benefits or costs of regulation, how the regulation will be implemented, and the effect the regulation will have on resources. Regulations can be beneficial or costly to private firms, which is why they are either sought out or are forced upon firms. The government also manages the regulation of prices and entry into markets or industries, as well as taxes and subsidies.

Governments have to intervene in the conflict between commercial procedures and the consumers using public services. Regulation needs to be implemented to balance profit maximization, market failure, as well as externalities. Governments implement regulation to make sure services are properly delivered and businesses are still able to develop.

To make resource allocation more efficient, governments will use economic regulation to manage the distribution of income. Economic efficiency helps to regulate monopolies and by controlling output and raising prices,  the optimal amount of goods and services will be produced.

Social regulations are also a part of the economic of regulation. Social regulation is how the government manages how a single business or individual conducts their economic activities, with the objective of improving any market failures. To achieve their market goals and social goals, governments will regulate the output of agriculture, the conduction of transportation, and other areas.

Categories within Economics of Regulation

The Sarbanes-Oxley Act of 2002

Describe the main aspects of the regulatory environment which will protect the public from fraud within corporations. Pay particular attention to SOX requirements. - Specifically evaluate whether SOX will be effective in avoiding future frauds. - Format consistent with APA guidelines

A Critique on Salvatore's Theory of the Firm

According to Salvatore (2012, p. 14) "The theory of the firm, which postulates that the goal or objective of the firm is to maximize wealth or the value of the firm, has been criticized as being much too narrow and unrealistic." Comment on this criticism and evaluate the alternatives. Do these alternative theories explain the ob

European Union (EU) and Preferential

Select either the European Union (EU) or the North American Free Trade Arrangement (NAFTA), and answer the following questions based on your selection: What is the purpose of a regional trading arrangement (RTA)? Why would each country/region agree to one? How has each of the countries in the EU or NAFTA (based on your sele

Government role

When several people died because of poisoned capsules of Tylenol pain reliever, strict government regulations were enacted to control the packaging of retail pharmaceuticals. Would private markets have reached the same result?

Sexual Issues & Discrimination

In your role as the new human resources (HR) manager, you plan to prepare a series of videos with various scenarios. These scenarios will allow the employees to view real-life sexual harassment issues that they may have to deal with. You are asking one of your male managers and one of your female managers to help create the

Study questions

1. Between 1968 and 1980, the US economy experienced a slowdown in productivity growth. However, since the mid 1980s, the economy has experienced increases in the growth rate in productivity. Can you give reasons why US productivity growth started to increase during the late 1980s and continued throughout the decade of the 1990s

Advertising Manipulation

Consider how free speech supports the right to circulate goods, services, and images in the marketplace. In addition, consider how free speech in advertising has raised concerns about advertising manipulation, especially with regard to children, teens, and health. Discuss in 250 to 300 words three contemporary issues regardin

Question about Economies of scope

1. (9-4) According to a statistical study, the following relationship exists between an electric light and the power plant's fuel costs (C) and its eight-hour output as a percent of capacity (Q): C = 16.68 + 0.125Q + 0.00439Q2 a) When Q increases from 50 to 51, what is the increase in the cost of fuel for this electric plant

Law - Command/Control

Consider the various provisions in RCRA (Resource Conservation and Recovery Act, 1976) that discourage land-based waste disposal. Identify and explain one aspect of the law that is command and control in approach and one that is incentive based.

payoffs for an advertising game between Coke and Pepsi

Where calculations are needed, please show step-by-step calculations used to arrive at your answer (s) A monopolist has demand and cost curves given by: QD = 10,000 - 20P TC = 1,000 + 10Q + .05Q2 a. Find the monopolist's profit-maximizing quantity and price. b. Find the monopolist's profit. The following matrix