Which theory of regulation assumes that the industry wants to be regulated, in order to reduce competition and achieve cartel-like conditions?

A) public interest theory
B) legal cartel theory
C) price-fixing theory
D) public ownership theory

Legal Cartel Theory

A concept where regulations permit or create conditions for the existence of cartels, which are agreements between competing firms to control prices or markets.

Public Interest Theory

Suggests that regulations are supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.

Price-fixing Theory

The economic analysis concerning agreements between competitors to sell a product or service at a set price, limiting competition.