The Hypothesis That Regulators Eventually Adopt Policies That Benefit the Producers

question 293

Multiple Choice

The hypothesis that regulators eventually adopt policies that benefit the producers in the industry is known as the

• A) capture hypothesis.
• B) producers' hypothesis.
• C) share-the-gains, share-the-pains hypothesis.
• D) it's-a-rip-off hypothesis.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the creation of goods and services.

Long Run

A period in which all factors of production and costs are variable, and firms can adjust all inputs and technology to reach a desired output level.

Output

The total amount of goods or services produced by a person, machine, business, or economy.

Prices

The sum of money anticipated, needed, or provided as payment for something.