The Capture Theory of Regulation,espoused by George Stigler,asserts That _____

question 148

Multiple Choice

The capture theory of regulation,espoused by George Stigler,asserts that _____

• A)consumers "capture" regulatory agencies so that regulations favor consumers.
• B)producers "capture" regulatory agencies so that regulations favor producers.
• C)regulators limit the market power of producers.
• D)a regulation favoring producers also leads to an increase in consumer surplus.
• E)consumers and producers work together to "capture" regulatory agencies in order to achieve more desirable regulations.