What is the role of regulation in a mixed economy?

Economics Mixed Economy Questions



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What is the role of regulation in a mixed economy?

The role of regulation in a mixed economy is to ensure fair competition, protect consumers, and maintain stability in the market. Regulations are put in place to prevent monopolies, promote a level playing field for businesses, and safeguard the interests of consumers. They also aim to prevent market failures, such as externalities and information asymmetry, by setting standards and enforcing rules. Additionally, regulations may be implemented to address social and environmental concerns, ensuring that economic activities are conducted in a sustainable and responsible manner.