The capture theory of regulation espoused by George Stigler

The capture theory of regulation, espoused by George Stigler, asserts that 0 a, a regulation favoring producers also leads to an increase in consumer surplus. b. consumers \"capture\" regulatory agencies so that regulations favor consumers. Oc. producers \"capture\" regulatory agencies so that regulations favor producers. Od. consumers and producers work together to \"capture\" regulatory agencies in order to achieve more desirable regulations. Oe. regulators limit the market power of producers.

Solution

Ans: producers \"capture\" regulatory agencies so that regulation favors producers.

Explanation:

Capture theory states that an industry can benefit from regulation if it can capture the regulatory agency involved.