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    Exam 13: Monopoly
  5. Question
    Under Rate of Return Regulation, a Regulated Firm Has an Incentive
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Under Rate of Return Regulation, a Regulated Firm Has an Incentive

Question 485

Question 485

Multiple Choice

Under rate of return regulation, a regulated firm has an incentive to


A) use an efficient amount of capital.
B) set its price equal to its marginal cost.
C) hide losses from bad debts.
D) inflate its costs.

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