The capture theory of regulation is that regulations
A) mean producers suffer losses.
B) result in diseconomies of scale.
C) benefit society, not producers.
D) benefit the regulators, not the producers or the consumers.
E) help producers to maximise economic profits.

Question

Quizplus · Accepted Answer

The capture theory of regulation suggests that regulatory agencies can be "captured" by the industries they are supposed to regulate, leading to regulations that benefit the producers by allowing them to maximize economic profits, rather than protecting consumers or the public interest.

The Capture Theory of Regulation Is That Regulations