Which of the following refers to the capture hypothesis of regulation?
A) the ability of the government to capture monopoly profits
B) the control of regulatory agencies by firms in an industry
C) consumer cost savings captured through regulation
D) horizontal mergers
B
You might also like to view...
Government-imposed quantity restrictions
A) generate a higher price for the good than would prevail under freely competitive markets. B) generate a lower price for the good than would prevail under freely competitive markets. C) does not affect the price of the good because quantity restrictions always ban sale of the good completely. D) can cause prices to either be higher or lower, but always cause excess quantities supplied to develop.
With an upward-sloping supply curve, which of the following is true?
a. An increase in price results in a decrease in quantity supplied. b. An increase in price results in an increase in supply. c. A decrease in price results in a decrease in quantity supplied. d. A decrease in price results in an increase in supply.