Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Under what market structures is government regulation of prices justified? Explain

Under what market structures is government regulation of prices justified? Explain

Marketing

Under what market structures is government regulation of prices justified? Explain.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Usually, the type of market structure in which government regulation is justified is one that has a lack of competition and an excessive amount of power (e.g. a market with a single player that charges prices at 5,000% above cost and uses the profit to pay large bonuses to management).

  • Therefore the type of market structure would include a monopoly or an oligopoly where there is evidence of collusion between the main suppliers to keep prices high.