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VARVARA [1.3K]
3 years ago
8

How do government regulators protect consumers?

Social Studies
2 answers:
jenyasd209 [6]3 years ago
8 0
Consumer<span> protection laws are a form of </span>government<span> regulation that aim to </span>protect<span>the rights of </span>consumers<span>.</span>
Julli [10]3 years ago
5 0

Goverment regulators protect consumers <u>by establishing laws which aim to preserve competition. </u>

On the first hand, competition ensures low prices in the long run. Such situation is benefitial for customers. Companies that offer their products at the most competitive (low) price, are able to attract a larger share of consumers and to maximize their profits. Therefore, companies strive to reduce their production costs and to produce more efficiently (generating more output with the same amount of resources), so that they can lower the market price of their products.

Alternatively, companies might decide to attract customers by producing better quality goods than the ones offered by their competitors. In such situation, the availability of better quality products is also benefitial for consumers.

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