Regulatory capture often occurs because of which of the following?
A. Government officials want stronger control over industry regulation.
B. Nearly everyone with expertise works in the regulated industry.
C. Patent law allows firms to gain monopoly power easily and therefore control a market.
D. Consumer groups are effective at lobbying the government for industry regulation.
Answer: B
Economics
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A company could produce 99 units of a good for $316 or produce 100 units of the same good for $320. The marginal cost of the 100th unit
A) is $3.20. B) is $4.00. C) is $320. D) cannot be calculated with this information.
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The following Cobb-Douglas production function, Q = 1.8L0.74K0.36, exhibits
A) increasing returns. B) constant returns. C) decreasing returns. D) Both A and B
Economics