The Social Interest Theory of Regulation Suggests That the Political

Multiple Choice

The social interest theory of regulation suggests that the political process and regulations will ________ and the capture theory of regulation suggests that the political process and regulations will ________.

A) seek to minimize deadweight loss; serve the interests of the producers
B) try to maximize the producers' economic profits; seek to minimize deadweight loss
C) be unaffected by deadweight loss; increase the firms economic profits
D) ignore producers' interests and concentrate on consumers' interests; seek to minimize firms' economic profits