Capture Theory Is

question 100

Multiple Choice

Capture theory is

• A) a model about perfect competition.
• B) a theory that explains the behaviour of competitive firms.
• C) the same as public interest theory.
• D) the theory that regulators capture firms' attention by dictating a very low price.
• E) an economic theory of regulation.

---

Definitions:

Total Cost

The sum of all costs incurred by a firm in the production of goods or services, including both fixed and variable costs.

Isocost Line

A diagram representing every possible mix of inputs that can be acquired for a specific total expenditure.

Cost Of Capital

The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Cost Of Labor

The total amount incurred by a business to compensate its employees, including wages, benefits, and taxes.