Which of the following illustrates the economic inefficiencies of gove

Which of the following illustrates the economic inefficiencies of government regulation?

(a) Railroad rate increases are set by a government agency and these increases fall below increases in repair and depreciation costs but railroad passengers are satisfied.
(b) Competitive railroad rates are determined by the buying and selling actions of those in the railroad industry.
(c) Rate increases set by government agencies are set to match the increases in repair costs and the acceleration in depreciated capital.
(d) Government protects private and individual rights to goods, service and resources.

ANSWER

(a)