The capture theory of regulation predicts that
A) regulation helps producers to maximize profits.
B) regulators capture the firm's economic profit and transfer it to consumers as consumer surplus.
C) regulators eliminate the deadweight loss a monopoly can create.
D) resources are used efficiently.
E) regulators capture the firm's economic profit and transfer it to themselves.
A
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Discuss how a politicians "policy differentiation" from his opponent in an election softens the competition over how much in political rents the politician will be able to collect.
What will be an ideal response?
Which of the following is a pure public good?
a) a library book b) public transportation c) the judicial system d) an interstate highway e) all of the above
Why might a system of marketable pollution permits lead to a higher concentration of polluted areas than would a command-and-control system?
What will be an ideal response?
Most economists believe that property taxes:
A. Should be eliminated B. Are progressive C. Are regressive D. Should become an important source of revenue for the Federal government