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Author Question: Under the social interest theory of regulation, regulators attempt to maximize profits for the ... (Read 64 times)

vHAUNG6011

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on: Jun 29, 2018
Under the social interest theory of regulation, regulators attempt to maximize profits for the owners of the firms being regulated. Is the previous statement correct or incorrect? Explain your answer.
 
  What will be an ideal response?

Question 2

What can lead to the shift illustrated in the figure above?
 
  What will be an ideal response?


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sylvia

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is incorrect. The social interest theory is the theory that regulators seek an efficient use of resources. The capture theory of regulation is the theory that regulators attempt to maximize the producers' economic profit.

Answer to Question 2

A decrease in the money wage rate or in the money prices of other resources, such as the price of oil, increase aggregate supply and shift the AS curve rightward while not changing potential GDP.


vHAUNG6011

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

Zebsrer

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Reply 3 on: Yesterday
Gracias!

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