Rationale for government regulation of firms

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[A] Explain the rationale for government regulation of companies with market power. Is regulation in the customers interest or in producer's interest and how might this control special interest groups?

[B] There is a tendency to turn problems of market failure over to the government. However, a representative democracy has failings of its own. Should we always expect government to perform better than the private sector in solving economic problems?

Reference no: EM1375731

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