Question
In: Economics
Many states require barbers and beauticians to be licensed. Using the public interest theory of regulation...
Many states require barbers and beauticians to be licensed. Using the public interest theory of regulation as a base, what, if any, arguments could you make to support such a regulation? Do you think consumers gain from such regulations? Why not just allow anyone to open up a barber shop or beauty salon?
Solutions
Expert Solution
public interest theory of regulation focuses to promote the welfare of people and helps prevent market failure. Using this theory, a licensed barbers and beautician will be trained, skilled and well informed professionals to deliver the hygienic and quality services to the consumers. Here, license is used to screen out those individuals who are poorly skilled and do not know about customer care. So, licensing of these professionals is good for the society.
Consumers gain in terms of better and quality services, but they have to pay more now as these service providers are licensed and they will put higher price as supply of these professionals decreases in the market. So, consumer surplus decreases.
If everyone is allowed to open barber shop or beauty parlor, then chances of getting poor treatment, injuries and infections will be more. It can make these shops to be focal point of spreading the infectious disease like AIDS and Corona Virus.
Rahul Sunny answered 2 years agoRelated Solutions
1) Can Public Interest Theory or Private Interest Theory explain the regulation of accounting using International...
1) Can Public Interest Theory or Private Interest Theory explain
the regulation of accounting using International Financial
Reporting Standards (IFRS)?
1The public interest theory of regulation holds that Group of answer choices regulators are seeking to...
1The public interest theory of regulation holds that
Group of answer choices
regulators are seeking to do and will do through regulation what
is in the best interest of the public or society at large.
even though regulators seek to do what is in the best interest
of the public at large, through regulation they end up doing what
is in the best interest of the special interests of the industry
that is being regulated.
even though regulators seek to...
The theory of peak-load pricing is irrelevant in industries that do not require regulation.
The theory of peak-load pricing is irrelevant in industries that
do not require regulation.
The public interest view of regulation suggests that regulation exists when the characteristics of a market...
The public interest view of regulation suggests that regulation
exists when the characteristics of a market differ significantly
from those of a competitive market, characterized by all of the
following except
A. an absence of spillovers (i.e., all costs are internalized to
sellers or buyers).
B. large numbers of sellers with relatively low market shares
and low cost of entry by new firms.
C. low-cost information to firms with respect to the cost of
production and to consumers concerning prices...
The public interest view of regulation suggests that regulation exists when the characteristics of a market...
The public interest view of regulation suggests that regulation
exists when the characteristics of a market differ significantly
from those of a competitive market, characterized by all of the
following except A. an absence of spillovers (i.e., all costs are
internalized to sellers or buyers). B. large numbers of sellers
with relatively low market shares and low cost of entry by new
firms. C. low-cost information to firms with respect to the cost of
production and to consumers concerning prices...
1. The public interest theory and the special interest theory of government intervention have their similarities...
1. The public interest theory and the special interest
theory of government intervention have their similarities and
differences. Compare and contrast these two theories and provide a
recent example of each. ( Explain in details and add references to
support)
2. How are Medicaid and Medicare similar? How are they
different? ( Explain in details and add references to support)
3. Increased demand for health care services leads to
an increasing need for health care organizations to be
cost-efficient. What...
Many Australian home loans that are interest-only actually require payments to be made on a fully...
Many Australian home loans that are interest-only actually
require payments to be made on a fully amortising basis after a
number of years.
You decide to borrow $800,000 from the bank at
an interest rate of 3.6% pa for
25 years. The payments will be
interest-only for the first 5
years, than they will have to be paid on a fully
amortising basis for the remainder of the loan term. Note
that the remaining loan term will be only 20...
Write at least a 350 word posting in which you discuss the public interest theory and...
Write at least a 350 word posting in which you discuss the
public interest theory and the special interest group theory as
they relate to the Patient Protection and Affordable Care Act of
2010. Be sure to include in your discussion how each describes why
the government intervenes in a market-based health care system and
the role politicians play in each. After reading the postings of
other students, select the one that provided you with information
or a view you...
Write at least a 350 word posting in which you discuss the public interest theory and...
Write at least a 350 word posting in which you discuss the
public interest theory and the special interest group theory as
they relate to the Patient Protection and Affordable Care Act of
2010. Be sure to include in your discussion how each describes why
the government intervenes in a market-based health care system and
the role politicians play in each. After reading the postings of
other students, select the one that provided you with information
or a view you...
Which of the following is an explanation, using bargaining theory, of why the United States went...
Which of the following is an explanation, using bargaining
theory, of why the United States went to war with Iraq in 2003?
Information deficiencies precluded a negotiated outcome. Saddam
Hussein was paranoid. George W. Bush was driven by revenge for
Iraq's attempt to assassinate his father. No agreements could have
been negotiated, so war was the only option.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Training and Development assignment. Describe the usage of Computer Based Training (CBT) in McDonald's Company training...
- PUT IN JAVA PROGRAMMING LANGUAGE The Rectangle class: Design a class named Rectangle to represent a...
- Journal article summary on inter-group conflict Peer Reviewed Journal article from past 3 years. Please include...
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
ADVERTISEMENT