Economists who think the capture theory explains regulatory behavior will support their claims by noting that
A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers.
B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups.
C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms.
D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.
D
You might also like to view...
The market for watermelons in Alabama is perfectly competitive. A watermelon producer making zero economic profit could make an economic profit if the
A) average total cost of selling watermelons does not change. B) average total cost of selling watermelons rises. C) average total cost of selling watermelons falls. D) marginal cost of selling watermelons does not change. E) marginal cost of selling watermelons rises.
A monopolist is
a. one of a large number of small firms that produce a homogeneous good b. one of a small number of large firms that produce a differentiated good c. a single seller of a product with many close substitutes d. one of a small number of large firms that produce a homogeneous good e. a single seller of a product with no close substitutes
Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium?
a. P = AR b. MR = MC c. P > MC d. All of the above are correct.
A ________ demand curve for shampoo would be caused by a change in the price of shampoo.
A) positively sloped B) leftward shift of the C) rightward shift of the D) movement along the