The main purpose of industrial regulation is to

A) lower price to marginal cost.
B) lower price to average total cost such that the firm earns a fair return.
C) break monopolies into competing firms.
D) reduce X-inefficiency.

Industrial Regulation

A policy mechanism where government bodies set rules, standards, and procedures that businesses must follow to ensure fair competition, protect public interests, and prevent monopolistic practices.

Marginal Cost

The incremental cost incurred by producing an extra unit of a product or service.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, including both fixed and variable costs.