Eg1 Task 309

In: Business and Management

Submitted By kadonelewis
Words 1267
Pages 6
Industrial Regulation is the regulation on an entire industry by the government. This form of regulation exists to safeguard industry prices and to prevent the formations of monopolies. One of the key reasons of industrial regulation is to protect the consumer from being taken advantage of. Industrial regulation can affect the market by passing on higher prices to the consumer as a result of higher production costs. Do to the lack of competition in certain industries industrial regulation could lead to x Inefficiency in the market place. This form of regulation could also affect the market by keeping a monopoly in power long after natural monopoly conditions have expired. The regulation of natural monopolies affects the market by protecting consumers from high prices. Regulations are put into place, allowing monopolies to receive fair profits and returns on their business enterprises. The entities that are affected by industrial regulation in terms of market structure are natural monopolies and oligopolies. Natural monopolies are affected by industrial regulations through perfect competition. When you have monopolies new business are not allowed into the industry and with the firm that has the industry monopolized that one firm is the consumer’s only option. The other market structure affected is by industrial regulation is the oligopoly. Oligopoly is a group of a few large firms controlling an industry. Regulations affect this market structure by deterring the firms within the oligopoly from charging unfair prices.
Social regulation is the regulation of the impact of the consumption and production of goods on society and nature. Social regulation also encompasses the regulation of the conditions of which the good produced in and covers the physical characteristics of the goods to assure that society is not harmed. Social regulations are government imposed…...

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