During $2008$ to $2011,$ there was a Bay Area firm known as Solyndra that sold expensive solar cells. The company executives knew their product could not compete effectively in that market. Nevertheless, they made friends with corrupt politicians that got a few federal agencies to issue $$government loan guarantees$$ for Solyndra. When the government offers a "government loan guarantee" this means that it will be the taxpayers who will pay for any losses. Solyndra was very clever, they gave lots of money back to the crooked politicians that helped them as payback for the favor. Sure enough $-$ Solyndra went bankrupt in $2011.$

How does Microeconomics classify$$this type of situation?$$

Multiple Choice

This is an example of Regulatory Capture

This is an example of an Earmark

This is an example of Collective Action

This is an example of Rent Seeking