Price cap regulation is defined as regulation that
A) imposes a price ceiling on the regulated firm.
B) encourages firms to exaggerate costs to increase profits.
C) uses marginal cost pricing to ensure efficient output.
D) uses average cost pricing to ensure costs are covered.
E) is essentially the same as rate of return regulation.
A
You might also like to view...
When we add private benefits and external benefits together, the result is called:
A. production benefits. B. social benefits. C. public costs. D. network benefits.
Adding more resources causes:
A. downward movement along a production possibilities curve. B. the production possibilities curve to shift in. C. upward movement along a production possibilities curve. D. the production possibilities curve to shift out.
Physical capital is the:
A. physical labor of workers. B. financial resources available for investment. C. talents, training, and education of workers. D. factories and machinery used to produce other goods and services.
An increase in the "Z" factors will decrease the equilibrium price level and decrease aggregate output, ceteris paribus.
Answer the following statement true (T) or false (F)