The social interest theory of regulation assumes that
A) regulations promote the attainment of efficiency.
B) regulations promote the attainment of the maximum economic profit.
C) public officials seek their own gain through regulation.
D) regulators will seek to maximise consumer surplus.

Question

Quizplus · Accepted Answer

The social interest theory of regulation posits that regulations are designed and implemented to promote public interest, particularly by enhancing efficiency in the market. This theory assumes that regulatory actions are taken with the goal of correcting market failures, such as monopolies or externalities, to ensure a more efficient allocation of resources.

The Social Interest Theory of Regulation Assumes That