When grocery stores issue special discount membership cards for shoppers effectively offering different prices based on quantities consumed, this is an example of

According to the capture hypothesis

A) regulators eventually support the views of consumers instead of the firms or the taxpayers, regardless of the reasons why the regulatory agency was established. B) regulators support the view of the regulated firms all along because that is the reason the regulatory agency was established. C) regulators eventually support the views of the regulated firms instead of the consumers or taxpayers, regardless of why the regulatory agency was established. D) regulators eventually support the views of either the firms or the consumers, but at the expense of the taxpayers, regardless of the reasons why the regulatory agency was established.

The biggest difference between using a Pigovian tax or a tradable allowance to correct for a negative externality is:

A. the government collect revenues from the tax, and the private parties trade quota rights on their own. B. the tax creates an efficient outcome, and the tradable allowances do not. C. the tax maximizes total surplus, but the tradable allowances do not. D. All of these are differences between the two government policies.