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Forum It is costly for businesses to comply with government regulation. More regulation increases per-unit production...

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It is costly for businesses to comply with government regulation. More regulation increases per-unit production costs for businesses and shifts the aggregate supply curve to the left. Deregulation will reduce per-unit production costs and shift the AS rightward. Discuss one business and the impact sustained by regulation or deregulation of the industry and how the business model has been affected and/or potential implications.

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Once laws are set in force on the company process there are several industry impacts. For example , some companies are Environmental Protection Agency targets. The department claims waste material management, carbon pollution limitation and toxins would be detrimental to the soil and water. The businesses that are subject to this have argued that, in the long term, limitations are costly and reducing their earnings. It is most commonly found in factories, construction etc.

This federal department needs to discourage businesses from dumping hazardous waste in order to protect the environment because it will harm the soil, and water people use it everyday. Another source is the FDA, which is Food Drug Administration, in control. Pharmaceutical firms also argue that there is concurrent advertisement of such products which should be carried out and evaluated in further clinical trials. It poses an inconvenience as pharmaceuticals will continue losing money because they can not deliver their medication. In addition, that is how market models and their possible consequences can be applied.

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keosha answered 1 year ago
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