The capture hypothesis suggests that
A) marginal cost regulation is superior to average cost regulation.
B) the well-focused interests of consumers will lead to the over-regulation of most industries.
C) the firms being regulated will unduly influence the regulators.
D) regulation will lead to over-entry and eventual losses for firms in the industry.
C
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When a factory pollutes the environment, there are costs associated with the damage to human health, property values, wildlife habitat, reduction of recreation possibilities, or other negative impacts. The term ________________ is used to describe those costs, which fall on third parties unrelated to the business.
a. positive externalities b. additional external costs c. collateral damage d. social externalities
In the private sector, all transactions are voluntary, so
A. individuals are required to participate. B. there are always winners and losers. C. presumably all parties benefit. D. often too few transactions will take place.
An increase in the demand curve for orange juice would be illustrated as a
A) leftward shift of the demand curve. B) rightward shift of the demand curve. C) movement up along the demand curve. D) movement down along the demand curve.
Market structure depends upon
A) the ease of entry and exit. B) the ability of firms to differentiate their goods and services. C) the number of firms in the market. D) All of the above.