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Which of the Following Is NOT True According to Capture

Question 11

Multiple Choice

Which of the following is NOT true according to Capture Theory?


A) Protection of monopoly power is the actual goal and result of legislation and regulations.
B) Regulation creates a legally enforceable monopoly that is utilized to prevent other producers from entering the market.
C) Politicians accept a monopoly in exchange for campaign contributions.
D) Companies earn lower profits, and the prices are lower than in a competitive market.

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