Capture theory is
A) an economic theory of regulation.
B) a model about perfect competition.
C) the same as the public interest theory.
D) the theory that regulators capture firms' attention by dictating a very low price.
E) a theory that explains behavior of competitive firms.
A
You might also like to view...
Credit is:
A) the loan that a debtor receives. B) the income that an employee earns. C) any good that cannot be consumed but is used for the production of other goods. D) any good that is available for free.
If all the assumptions of perfect competition hold, the result is an efficient, or Pareto optimal, allocation of resources. What is necessary to prove this?
What will be an ideal response?
International agreements to limit pollution can lead to:
a. a Nash equilibrium where no countries face the full cost of pollution that they generate. b. a Nash equilibrium where countries that regulate pollution gain more than countries that do not regulate pollution. c. a Nash equilibrium where countries that regulate pollution lose more than countries that do not regulate pollution. d. a Nash equilibrium where no country regulates pollution.
Which of the following is not a characteristic of a perfectly competitive market structure?
A) There are a very large number of firms that are small compared to the market. B) All firms sell identical products. C) There are no restrictions to entry by new firms. D) There are restrictions on exit of firms.