The capture theory of regulation,espoused by George Stigler,asserts that _____
A) consumers "capture" regulatory agencies so that regulations favor consumers.
B) producers "capture" regulatory agencies so that regulations favor producers.
C) regulators limit the market power of producers.
D) a regulation favoring producers also leads to an increase in consumer surplus.
E) consumers and producers work together to "capture" regulatory agencies in order to achieve more desirable regulations.
Correct Answer:
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