The capture theory holds that regulations are supplied to maximize
A)total sales.
B)economic profit.
C)marginal product.
D)consumer surplus.
E)marginal revenue.

Question

Quizplus · Accepted Answer

The capture theory suggests that regulations are developed and implemented by interest groups seeking to maximize their economic profits. Therefore, regulations are designed to benefit specific industries or companies rather than the overall economy or consumers.

The Capture Theory Holds That Regulations Are Supplied to Maximize