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A firm that disagrees with a particular regulation and attempts to avoid it by complying with the specifics of the law but not the intent of the law is demonstrating:

A)
social regulation.
B)
creative response.
C)
the capture hypothesis.

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A firm that disagrees with a particular regulation and attempts to avoid it by complying with the specifics of the law but not the intent of the law is demonstrating:

A)
social regulation.
B)
creative response.
C)
the capture hypothesis.



Creative response describes the actions of a firm that for whatever reason, economic or philosophical, is trying to avoid full compliance with a regulation without any obvious violations of the law. Though technically in compliance, the firm is violating the spirit of the regulation.

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