Capture theory states that

Question

Quizplus · Accepted Answer

Capture theory states that regulations can be captured by the industry being regulated, leading to the industry using its power to influence regulations in its favor. This can often result in regulations that increase deadweight loss and limit competition, as the industry seeks to protect its own interests rather than promoting an efficient outcome. Thus, C is the best choice as it accurately reflects the negative consequences of capture theory.

Capture Theory States That