Univariate analysis refers to analyzing a. the relationship ...

[tiffannnnyyyyyy]

Univariate analysis refers to analyzing
 a. the relationship between variables.
  b. a variable in isolation.
  c. the unit variation for a variable.
  d. Both a and b are correct.
  e. Both b and c are correct.

Question 2

Discuss the costs and benefits of regulation and who pays for or receives each, respectively. When is regulation justified?

[ecabral0]

Answer to Question 1

b

Answer to Question 2

The costs associated with regulation include the cost of complying, enforcement costs, and costs associated with unintended side effects resulting from regulations. Companies often incur the cost of complying with a regulatory remedy. Enforcement costs are incurred by regulatory agencies and paid for by taxpayers. The unintended side effects that might result from regulations represent a cost to both buyers and sellers.

Regulation offers three major benefits. First, consumer choice among alternatives is improved when consumers are better informed in the marketplace. Second, when consumers become better informed, product quality tends to improve in response to consumers' changing needs and preferences. Finally, reduced prices resulting from a reduction in a seller's information market power is a third regulatory benefit. Consumers are the primary beneficiary of regulation.

In sum, regulation is theoretically justified only if the benefits exceed the costs.