What Is One Reason Existing Firms Might Lobby the Government

Multiple Choice

What is one reason existing firms might lobby the government to increase regulation in their industry?

A) It increases entry and exit costs, thereby reducing producer surplus to existing firms.
B) It increases entry and exit costs, thereby potentially increasing producer surplus to existing firms.
C) It increases entry and exit costs, but has no impact on producer surplus.
D) Firms cannot be trusted to treat their customers fairly and ethically.