Regulation 2 Industrial regulation is government imposed regulation of an entire industry in order to monitor prices and products provided to the public. Industrial regulation exists to avoid overpricing, lack of competition and the overall taking advantage of consumers. The intended impact on the markets is to promote competition and economic efficiency. Industrial regulation also intends that monopolies and oligopolies do not control the entire market, charging high prices and providing fewer and inferior products, which in turn “harms consumers and society” (McConnell, Brue, Flynn & et al, 2011, pg. 382). These regulations reduce the market power of monopolies, therefore allowing entry into the market by the competition which then allows for substitute products and price competition. It also reduces the power of oligopolies and increases market competition and prevents collusion. The antitrust laws also help anti competition and price fixing by not allowing monopolies to develop. Social Regulation is government imposed restrictions on corporate behavior to avoid unwanted behavior such as pollution or dangerous work situations. Social regulation exists to protect society by maintaining safer products, lessening pollution, improving work conditions and creating greater equality of economic opportunity, otherwise considered to improve our way of life. A vast majority of employers and also employees are affected by social regulation. Employers are required not to discriminate in hiring practices, allowing more opportunities to various groups of people including people with disabilities. Also, employers must provide safe working conditions as stating in OSHA (The Occupational Regulation 3 Safety and Health...
References: McConnell, C., Brue, S., Flynn, S., & et al, S. (2011).Economics. (19e ed.). New York: McGraw-Hill%2FIrwin.
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