Final answer:
Regulatory capture occurs when interest groups exert influence over regulatory bodies, leading to regulations that benefit the industries they represent rather than consumers. This influence is achieved through lobbying, campaign contributions, and post-office employment opportunities.
Step-by-step explanation:
Regulatory capture refers to the phenomenon where interest groups, typically representing specific industries, exert significant influence and control over regulatory bodies that are meant to regulate those industries. This influence is achieved through various means, such as lobbying, campaign contributions, and providing employment opportunities to regulators after they leave office. As a result, the regulated industries are often able to shape regulations in a way that favors their own interests, rather than prioritizing the welfare of consumers.