The result of regulatory capture is that government price regulation can often become a way for existing competitors to work together to reduce output, keep prices high, and limit competition.
Regulatory capture occurs when a government’s regulatory agency, which was created in the public interest, ends up advancing the political or commercial concerns of the very people, or companies which it is supposed to be regulation.
Regulatory capture is a form of government failure. Thus, when regulatory capture exists, the interest of political groups or companies become more important than those of the public, which leads to a net loss to society.
Hence, the answer was given and explained above.
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