Which of the Following Would Best Explain Why Regulatory Capture

Multiple Choice

Which of the following would best explain why regulatory capture is a problem?

A) The regulations implemented tend to reduce the profitability of the regulated industry and reduce global competitiveness.
B) Regulatory capture unduly increases the size and power of government, increasing costs for taxpayers.
C) Individuals implementing the regulations lack expertise about the industry and therefore make poor regulatory choices.
D) The regulations implemented serve the private interests of the regulated industry, rather than addressing social interests such as consumer safety and environmental protection.