What is industrial licensing? How does it impact allocation of resources

Industrial licensing is an authority issued by the government organisation to permit the institution or organisation for starting an industry or to start certain function.
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What is industrial licensing how does it impact allocation of resources

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allocation of resource means-- assignment of availabe resources

impact on allocation--- it REGULATES the allocation of resources for different uses as whenver the company will expand its production capacity  it will be required to  acquire  licence n thus it will give the govt. an opportunity to keep a check that where the resources are going ...for what purpose they are being used..n if scarce resources are properly utilised or not..

 

without license any industry would use or even exploit the resuorces no matter how scarse they are..

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Hhhi
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