Respuesta :
The costs involved in Compliance with government regulations are passed on to the consumer.
What are compliance costs?
Compliance costs can be defined as those costs associated with compliance with the govt. regulations requirements, in addition to any deficit costs incurred on the tax.
The costs of compliance are insignificant and in some cases relatively high, which probably reflects poor govt. regulation.
Compliance costs are translated into the prices of goods and services because these costs have to be paid by companies, later production costs go up, and eventually, prices will change which will be ultimately borne by the consumers.
In addition, such costs can have a profound effect on businesses and individuals.
Thus, Option C is the correct choice.
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