The capture theory of regulation implies that
A) regulations promote the attainment of efficiency.
B) regulations promote the attainment of economic profit.
C) public officials favor voters over producers.
D) the demand for regulation is less elastic than the supply.

Question

Quizplus · Accepted Answer

The capture theory of regulation suggests that regulatory agencies can be dominated by the industries or interests they are supposed to regulate, leading to regulations that benefit these industries, often resulting in economic profit for them rather than promoting efficiency or public interest.

The Capture Theory of Regulation Implies That