25. Which of the following is an explanation of the capture theory? a. regulator

Question

25. Which of the following is an explanation of the capture theory?

a. regulators who are interested in keeping their jobs must please both the industry and consumers.

b. when products have too many warning labels, consumers may not read any of them,

c. people who have been in an industry are most likely to be asked to be regulators of the industry,

d. in some markets, sellers have more information about products than buyers.

26, Which of the following is a provision of the Sherman Act?

a. forbids restraint of trade and attempts to monopolize markets.

b. outlaws predatory pricing and deceptive business practices

c. forbifs price discrimination that substantially reduces competition.

d. forbids specific practices that restrain trade, exclusive dealerships, and some corporate stock ownership.

27. Which of the following is an example of bundling?

a. a company cuts prices below costs in an attempt to drive other firms out of the market.

b. a software product comes in two types, Standard and Professional (with more features)

c. a computer operating system is sold with an Interenet browser bulit in,

d. a copier company requires buyers to purchase toner and paper from the company or the warranty is void

27b. The supreme court has generally considered bundling to be (illegal, legal).

Explanation / Answer

25

A.Regulators who are interested in keeping their jobs must please both the industry and consumers.

ays an industry can benefit from regulation if it can capture the regulatory agency involved. This can happen if the industry

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