1. Environmental Protection Agency (EPA) regulations tend to go through many stages of review and approval before they are implemented. Not only do many regulators have to approve a new regulation, but comments and reviews from industry and conservation organizations are typical. Explain these complicated procedures in light of the theories of supply and demand for regulation.
2. Corporate responsibility may require changing the mission of the company to a "constrained" wealth maximization. Is it possible for a few firms in the marketplace to shift their objective functions in this way? Why?
1. The supply for regulation are the people who assess the need for, decide on, and police environmental regulations. The demand comes from the people who would be hurt by companies who acted in their best interest without the enforcement of regulations in place. The multiple stages of review are for two major reasons. First there are a number of people who have differing views and who would be ...
Environmental Protection Agency (EPA) regulations are carefully reviewed.