What is one reason activists might lobby the government for regulation limiting the production of a product to less than would normally be in a perfectly competitive market?
A) They value consumer surplus more than producer surplus.
B) They value producer surplus more than consumer surplus.
C) They seek to avoid future regulation.
D) They seek to minimize total surplus.

Question

Quizplus · Accepted Answer

Activists might lobby for regulation limiting production to protect the interests of producers, often because they believe it will lead to higher prices and profits for those producers, thus valuing producer surplus more than consumer surplus.

What Is One Reason Activists Might Lobby the Government for Regulation