Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?

A. Persuade the regulator to operate in the industry’s interests
B. Persuade the regulator to act in the firms interests.
C. Bribe the regulator.
D. Persuade the government to change the regulatory regime.

Correct Answer: A. Persuade the regulator to operate in the industry’s interests ✔

Last Updated: June 11, 2019