Answer:
The correct answer to the following question is option C) government regulations can lead an increase in production cost .
Explanation:
The government regulations can easily shape the structure and conduct of a business in an industry and it certainly does have an impact on the business profits. Government regulations which can include the price regulation can decrease the profits of a business by causing the business to set high prices of the product, have an affect on demand and supply of the product,high production cost due to increase in prices of input etc.
