Regulatory Capture Is Said to Have Occurred When Which of the Following

question 203

Multiple Choice

Regulatory capture is said to have occurred when which of the following is true?

• A)Rules and enforcement in an industry are heavily influenced by the industry being regulated.
• B)One firm controls an entire market, having captured customers away from other firms.
• C)Government imposes excessive regulations in an industry, resulting in inefficiencies.
• D)Consumers make all the rules for an industry, forcing firms into inefficient production methods.

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Definitions:

Elasticity

The measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price or income.

Lowest Possible

This term needs more context to provide a specific definition; generally, it refers to the minimum achievable level or value in a given situation.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied responds infinitely to changes in price.

Demand Curve

A graphical representation showing the quantity of a good that consumers are willing and able to purchase at various prices.