Answer:
regulations
Explanation:
A market economy operates under the logic of the interaction between supply and demand for goods and services, so that firms act in a system of competition, via prices, for the market share. Thus, the profit of the firms comes from the competition system. The most efficient firm will be able to deliver the good at a lower cost and gain greater market share and maximize its profit. The same applies to the job market in a market economy, where workers compete for jobs according to their skills.
However, regulation is not an aspect subject to competition. On the contrary, regulation is a tool by which the government stimulates competition. Regulation serves, for example, to prevent the government from forming price cartels.Thus the government penalizes, through regulations, companies that form cartels because this is a practice against competition.
