Overhead costs are identical to fixed costs

When a firm is regulated so that its price enables it to earn a specified target percent return on its capital, the regulation is called

A) rate of return regulation. B) price cap regulation. C) earnings limited regulation. D) target pricing regulation.

Villagers in Xiaogang, China, produced more rice than those in surrounding villages because:

a. they had better farmland. b. they were given better seeds. c. they were able to keep the output they produced individually. d. they made each family responsible for a certain, higher quota of rice production. e. they had common ownership over the rice produced.