deregulation can solve the problem of regulatory capture and increase economic e

Question

deregulation can solve the problem of regulatory capture and increase economic efficiency:
A) when the industry ends up generating substantial external costs
B) if the deregulated industry quickly evolves into a monopoly
C) when the regulations covering the industry are tightened
D) if the deregulated industry becomes more competitive deregulation can solve the problem of regulatory capture and increase economic efficiency:
A) when the industry ends up generating substantial external costs
B) if the deregulated industry quickly evolves into a monopoly
C) when the regulations covering the industry are tightened
D) if the deregulated industry becomes more competitive deregulation can solve the problem of regulatory capture and increase economic efficiency:
A) when the industry ends up generating substantial external costs
B) if the deregulated industry quickly evolves into a monopoly
C) when the regulations covering the industry are tightened
D) if the deregulated industry becomes more competitive

Explanation / Answer

Option D is correct.

This is because there is no regulatory agency left to capture and it works well if the deregulated industry becomes competitve.

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