Regulation OCR AS Economics: Markets in Action

  • Created by: Matt Lowe
  • Created on: 03-04-13 15:07

Regulation OCR AS Economics: Markets in Action

Advantages

  • Improves efficiency.
  • Theoretically nearly optimal results should be produced consistently.
  • Restricts supply, allowing businesses to charge higher prices.
  • Less risk if the business collapses.

Disadvantages

  • It is hard to measure.
  • Provides funding for the government.
  • Businesses may not be able to afford the fines.
  • Interferes with the optimisation of resources.
  • Reduces competitiveness.

Evaluation

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