An Incentive-Regulated Firm Can Mislead the Regulator by

Multiple Choice

An incentive-regulated firm can mislead the regulator by

A) saying that its marginal cost is lower than it actually is, in order to get a higher price.
B) asking to charge the marginal cost price.
C) hiring the best lawyers to lobby the regulator.
D) saying that its average total cost is higher than it actually is, in order to get a higher price.
E) asking to charge the average cost price.