The capture theory of regulation is defined as
A) the use of regulations to assure the efficient use of resources.
B) the constant reapplication of regulation on the cable TV industry.
C) the use of regulation to assist producers to maximize profits.
D) the removal of regulations on business activities.
E) regulation that focuses on consumers' interests and ignores producers' interests.

Question

Quizplus · Accepted Answer

The capture theory of regulation focuses on how producers can influence regulation to maximize profits for themselves. It suggests that regulators can become "captured" by the industries they regulate, leading to regulations that primarily benefit those industries rather than the general public.

The Capture Theory of Regulation Is Defined as