Question

An years past, firms around the world have secretly engaged in collusive agreements to restrain production and push prices above competitive levels.

Evidence compiled by government officials investigating such agreements has revealed that conspiring firms often utilize similar methods of establishing and enforcing collusive restraints of trade. Most agreements, for instance, assign to each firm an allowed market share, a permitted region of operations, or an approved set of customers. In addition, participating firms commonly are required to exchange sales information so that they can monitor adherence to their agreements to restrain trade. In this chapter, you will learn why firms that typically utilize these techniques to formulate and maintain collusive agreements engage in secret conspiracies: Such agreements are illegal under U.S. antitrust laws.

Distinguish between economic regulation and social regulation

Short answer

A training reflection that summarises what data, competencies, and perspectives pupils should be able to demonstrate after gathering input.

Step-by-step solution

Given information

Statistics from the OECD Wellbeing, morality, the ecosystem, and communal solidarity are all safeguarded by ethical legislation. The main purpose of social restrictions may be minor or even unintended, yet they can be enormous.

Explanation 

The businesses with $50$or more employees are considered to experience lower long-run average costs as their output increases. Such businesses are common in sectors such as hotels & motels, engineering goods, power & electric supply, automobiles, chemical, securities, banking, transportation, communication and manufacturers of products of mass consumptions.

This means such businesses are designated large set up with high levels of operational costs that caters to the needs of the larger people base and that they have the potential to form cartels, influence price and availability of goods in the market.

Owing to large operational costs and their potential to meet demands of larger people base, it is necessary to regulate the operations of the firms from different angle with prime focus on environmental impact, product standardization, fair trade practices, fair employment practices and compliance with rules \& regulations that defines the category to which they belong to.

That means, there are two angles to regulations - economic and social.

Explanation

The economic regulations focus on adherence of such businesses with respect to parameters such as free trade practices, restriction of monopolistic trade practices, price & rate regulation, goods availability regulations, product standardization, entry & exit regulations, financial regulations and fair employment practices.

The social regulations focus on adherence of such businesses with respect to parameters such as right advertising, responsible production activities, health safety regulations and occupational regulations. The objective of such regulations is to prevent misleading advertisements, promote health safety compliances, check all forms of discrimination at workplace, promote compliance with environmental standards for air & water and promote responsible production activities.

Thus, it can be concluded that stringent work rules that are imposed on French businesses with $50$or more employees are partially of the nature of economic regulations and partially of the nature of social regulations.

Due to the presence of such stringent work rules imposed on businesses with $50$or more employees, there are fewer businesses with $50$or more employees than businesses with $49$or fewer employees.