The theory that regulation helps producers to maximize profit is the
A) social interest theory.
B) consumer surplus theory.
C) antitrust theory.
D) capture theory.
E) oligopoly theory of regulatory bodies.

Question

Quizplus · Accepted Answer

The theory that regulation helps producers to maximize profit is known as the capture theory. This theory suggests that regulatory agencies are often captured by the industries they are supposed to regulate, leading to policies and regulations that benefit the industry rather than the public. This can lead to higher prices, reduced competition, and lower quality for consumers, while allowing producers to earn higher profits.

The Theory That Regulation Helps Producers to Maximize Profit Is