Watchdog for consumers to being lapdog for industry

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Reference no: EM131391954

What term do economists use to describe how governmental agencies such as, say, the Federal Trade Commission, may go from being a “watchdog” for consumers to being a “lapdog” for industry?

A. Regulatory capture effect

B. The Averch-Johnson effect

C. The shut-down rule

D. A natural monopoly

E. None of the statements in A—D accurately state the shutdown rule for a competitive firm.

Reference no: EM131391954

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