Suppose the transportation industry has been regulated for many years. Government now proposes to deregulate the industry, only to find that firms in the industry oppose this action. This is consistent with the

A) public interest theory of regulation.
B) theory of natural monopolies.
C) legal cartel theory of regulation.
D) Alcoa and U.S. Steel court decisions.

Deregulate

The process of removing or reducing government regulations from an industry or business, often to foster more competition and innovation.

Legal Cartel Theory

A theory that proposes legal frameworks and regulations can sometimes create environments that encourage the formation of cartels, or cooperate between firms to control prices and output like a monopoly.

Public Interest Theory

The theory that regulation seeks to protect the public at large from inefficiencies and inequities that occur because of certain market practices.