Multiple Choice
A local regulator has calculated the average cost of production for the public water utility. The regulator has allowed an adjustment for the normal rate of profit the firm should expect to earn, and then set the price that consumers can be charged accordingly. In this instance, the regulator has used which of the following?
A) cost-plus regulation
B) cost-plus analysis
C) price-cap regulation
D) market-price analysis
Correct Answer:
Verified
Correct Answer:
Verified
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