• anonymous
what role does government regulation serve in business?
Economics - Financial Markets
  • Stacey Warren - Expert
Hey! We 've verified this expert answer for you, click below to unlock the details :)
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
  • schrodinger
I got my questions answered at in under 10 minutes. Go to now for free help!
  • hhopke
Depends on the type of economy- In a traditional economy (such as the Inuits), individuals collaborate to make all decisions. The government is either nonexistent, or has little to no effect on business. In a market economy, there is absolutely no government intervention- every single decision is made by businesses and individuals. In a control economy, the government makes all the decisions- the government regulates everything, and controls all of the business. In a mixed economy (usually some mix between market and control economies), the government places regulations on businesses to prevent market takeover, among other things. For instance, there are 4 main cell phone companies- T-Mobile, Verizon, Sprint, and AT&T. If the government didn't place regulations, Verizon might purchase the other three, and then, being the only cell company in operation, raise prices to a ridiculous rate. People would still buy from Verizon and pay these ridiculous prices, though, because there would be no alternative.

Looking for something else?

Not the answer you are looking for? Search for more explanations.