The rate-of-return regulated public utility can have incentive to use more capital than is efficient relative to other inputs
Indicate whether the statement is true or false
T The rate-of-return regulated public utility earns profit based on how much capital it uses, and if the return it is allowed to earn per unit of capital exceeds its cost of capital, which is usually the case, it will want to use more capital so it can keep more profit.
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If a monopolistically competitive firm can earn a profit, it will increase production until:
a. MR > AVC. b. MR = ATC. c. MC > MR. d. MR = AR. e. MR = MC.
According to behavioral economics, an employee will likely
a. work harder if she is a satisficer and if she believes a coworker is overpaid. b. work harder if she is a satisficer, but work less hard if she believes a coworker is overpaid. c. work harder if she believes a coworker is overpaid, but work less hard if she is a satisficer. d. work less hard if she is a satisficer and if she believes a coworker is overpaid.