Question

A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has. become a captured regulator. engaged in a creative response to regulation. reduced the scope of the lemons problem. shared the gains and pains of regulation.

Answer 1

engaged in a creative response to regulation.

Step-by-step explanation:

Regulation is can be defined as set of rules created by the government, and imposed on firms outside the public sector. It is usually upheld by the use of sanctions or penalties to regulate business activities in the private sector.

A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has engaged in a creative response to regulation.