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Regulation and Deregulation

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1. List and explain in detail three benefits of regulation.

2. List and explain in detail three benefits of deregulation

3. a. Is there too much government regulation today? Why or why not?
b. Explain the impact of regulation on prices.
c. Explain the impact of regulation on business investment.

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1) Price control is a benefit of regulation to the consumer. The consumer can be assured that the service will be provided and they will not be charged a price that they will have to be forced to accept for anything that is regulated that is a necessity such as transportation. Another benefit is safety standards as when business is highly regulated, the product has certain restrictions and standards it has to meet before letting the public use product. This assures individuals that the product is safe and will not have severe side effects such as the pharmaceutical drug industry and FDA regulation. Regulation also benefits the businesses who are providing the regulated product or service because the entry barrier is somewhat high with all the restrictions and standards ...

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