Rate of Return Regulation Will

Multiple Choice

Rate of return regulation will

A) always result in the firm producing the quantity that would be produced if the market were competitive.
B) always result in the firm producing less than the quantity that would be produced if the market were competitive.
C) always result in the firm producing more than the quantity that would be produced in a competitive industry.
D) result in a new equilibrium with either more or loss produced in comparison to a competitive market.