3005EconomicsMedium
Economists use the term regulatory capture to mean a situation where the private sector firms being regulated?
APersuade the regulator to operate in the industry’s interests
BPersuade the government to change the regulatory regime.
CPersuade the regulator to act in the firms interests.
DBribe the regulator.
Correct answer
A. Persuade the regulator to operate in the industry’s interests
Explanation
The correct answer is Persuade the regulator to operate in the industry’s interests.