The capture theory of regulation predicts that regulations bring ________ to producers and impose ________ on any individual consumer.
A) small benefits; small costs
B) small benefits; large costs
C) large benefits; small costs
D) large benefits; large costs
E) large benefits; no costs

Question

Quizplus · Accepted Answer

The capture theory of regulation suggests that regulatory agencies eventually come to be dominated by the very industries they were charged with regulating, leading to regulations that serve the interests of producers. This results in large benefits for producers because regulations can be manipulated to their advantage, while the costs imposed on any individual consumer are relatively small, as the negative effects are dispersed across a large population.

The Capture Theory of Regulation Predicts That Regulations Bring ________