The course: Risk Management & Insurance

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. small numbers of sellers with relatively high market shares and high cost of entry by new firms. 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 and quality. D. an absence of spillovers (i.e., all costs are internalized to sellers or buyers).