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In my intro microeconomics class I teach that big business can and does use regulations to increase fixed costs of compliance, thereby protecting incumbents from competition and eroding the natural free market process. This baby formula situation is a great example, and I might use it in future classes.
What textbook do you like for that class? Is it the Hal Varian level course or the Tyler Cowen level? Those are the two textbook authors I recall using.
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I use my own materials, but before I went that route I was using Mankiw. It's a college freshman/soph level class, basically the first econ class you take
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