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Hpreet796 Hpreet796
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5 years ago
Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. Which of the following statements is TRUE?

• Under both the capture theory and the share-the-gains, share-the-pain theory profits will decrease.

• An increase in price will occur quicker in the capture theory than the share-the-gains, share-the-pain theory.

• In the capture theory there will be an increase in price but not in the share-the-gains, share-the-pain theory.

• An increase in price will occur quicker in the share-the gains, share-the-pain theory than the capture theory.
Textbook 
Economics Today: The Micro View

Economics Today: The Micro View


Edition: 19th
Author:
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austireaustire
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