What Is One Reason Activists Might Lobby the Government for Regulation

question 113

Multiple Choice

What is one reason activists might lobby the government for regulation limiting the production of a product to less than would normally be in a perfectly competitive market?

• A) They value consumer surplus more than producer surplus.
• B) They value producer surplus more than consumer surplus.
• C) They seek to avoid future regulation.
• D) They seek to minimize total surplus.

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Definitions:

Consumer Product

Goods bought by individuals for personal or household use.

Installations

Fixed assets or equipment necessary for an organization or business to operate, sometimes referring to large machinery or technical setups.

Steel Ingots

Large blocks of steel that have been forged or cast and are used as raw material for further processing and shaping into various steel products.

Sheet Metal

Thin, flat pieces of metal formed into sheets that are used in various applications including manufacturing and construction.