Which of the following statements regarding regulation is least accurate? A) Regulators are impartial and their actions are not influenced by industry participants. B) Regulation has often been disadvantageous to consumers because of higher prices and less product choice. C) Regulation has often been advantageous to industry participants because of increased profitability and decreased competition. D) Regulators are necessary to take action to correct market deficiencies.
a or d
A?. Capture hypothesis
it’s A although i was thinking that c is not that correct because I’m not sure about profitability increase once regulation is in place
A) Regulators interests can get pulled from either side…can’t remember the term (is it capture hyptohesis…kinda like middle-of-the-road)
a… capture hypothesis…
This one is 100% A. Capture Hypothese and supporting all the 3 parties in question.
A. D sounds right, but a natural monopoly would be an example here.