Question: An Associated Press article noted that some groups have filed law suits over what the groups describe as overzealous licensing schemes, in occupations such as

An Associated Press article noted that some groups have filed law suits over what the groups describe as "overzealous licensing schemes, in occupations such as hair braiders, yoga teachers and casket makers."
a. What effect might such government licensing requirements have on the rate of new businesses being formed?
b. Given your answer to part (a), why might state and local governments pass such licensing requirements?

Step by Step Solution

3.38 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Licensing requirements for some professions such as medical doctors help to r... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1347-B-A-A-M-E(306).docx

120 KBs Word File

Students Have Also Explored These Related Micro Economics Questions!