Refer to Figure 19.5.1 above. If unregulated, the industry will produce:

A) Q₁.
B) Q₂.
C) Q₃.
D) Somewhere between Q₁ and Q₃.

Unregulated Industry

An industry or sector that operates without significant government rules, restrictions, or oversight, often leading to a free market scenario.

Produce

To create or manufacture goods and services through the process of combining labor, materials, and technology.

Output

The total amount of goods or services produced by a business, industry, or country over a specific period of time.