The Capture Theory of Regulation Specifies That

question 48

Multiple Choice

The capture theory of regulation specifies that

• A)a firm will attempt to capture a large share of its market and then force its competitors out of business.
• B)regulators of monopolies capture or control the market behavior of monopolies to suit the best interests of society.
• C)industries or firms can sometimes gain control of the agencies that are attempting to regulate them.
• D)directors of one company often sit on the board of directors of another company in the same industry and thereby capture control of the industry.