The public interest theory of industrial regulation contends that

A) while industrial regulation is sound in theory, bureaucrats allow monopolists to obtain excessive profits.
B) regulated monopolies are tantamount to legal cartels.
C) the objective of regulation is to protect the public from the market power inherent in natural monopolies.
D) firms in some industries want to be regulated.

Public Interest Theory

A theory suggesting that regulation is supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.

Industrial Regulation

Government policies and rules aimed at regulating and controlling industry practices to promote fair competition, protect consumer interests, and prevent market abuses.

Natural Monopolies

A market structure where a single firm can produce the entire market output at a lower cost than could multiple firms, often due to high fixed costs.