When markets fail to allocate resources efficiently in an industry, the government often intervenes by regulating that industry. Explain with practical examples four (4) problems that could prevent regulation from leading to the optimal allocation of resources?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 8MC: Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up...
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  1. When markets fail to allocate resources efficiently in an industry, the government often intervenes by regulating that industry. Explain with practical examples four (4) problems that could prevent regulation from leading to the optimal allocation of resources? 
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