Which of the Following Is a Characteristic of Capture Theory

question 1

Multiple Choice

Which of the following is a characteristic of capture theory?

• A) In deciding on a particular regulation, regulators consider the impact on key voters and on election finances
• B) The regulated subsequently try to control the regulator, to achieve their self-interest
• C) The regulator is a neutral arbiter, and does not let its own interest impact on its rule-making process
• D) None of the given options are correct

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Definitions:

Same Price

A condition where various sellers offer a product or service at an identical cost to consumers.

Output Decrease

A reduction in the quantity of goods or services produced by a firm, sector, or economy.

Monopoly Firm

A single company or entity that has exclusive control over the production and sale of a particular product or service.

Profit Increase

An rise in the difference between a business's revenues and its expenses, indicating improved financial performance.