Question

Which statement describes an opportunity cost that could result from the government regulating businesses?

Answer 1

The best answer is C) Government regulations can lead to an increase in production costs.

One opportunity cost of government regulation is the fact that government regulation often causes companies to change their production in ways that make it less efficient and more costly, although the idea that the benefits to society outweigh these costs.

A) is not negative and not necessarily an effect of regulation
B) is not negative