Author Question: Which of the following best describes the capture theory of regulation? i. Regulation seeks an ... (Read 41 times)

Davideckstein7 · **on:** Jun 29, 2018

Which of the following best describes the capture theory of regulation?

i. Regulation seeks an efficient use of resources.
ii. Regulation is aimed at keeping prices as low as possible.
iii. Regulation helps firms maximize economic profit.
A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii, and iii

Question 2

The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 100 billion kilowatt hours are produced is

A) 5 per kilowatt.
B) 10 per kilowatt.
C) 15 per kilowatt.
D) 20 per kilowatt.
E) 0 per kilowatt.