Multiple Choice
The capture theory of regulation contends that
A) the public "captures" the benefits of regulation through lower prices.
B) natural monopolies "capture" high profits through the reduction of output.
C) the regulatory agency is eventually "captured" by the special interests of the industry being regulated.
D) large corporations "capture" high profits by regulating the tastes and preferences of the buying public.
Correct Answer:
Verified
Correct Answer:
Verified
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