Which of the following types of economic regulation is most likely to encourage a natural monopoly to NOT inflate its costs?
A) average cost pricing rule
B) rate of return regulation
C) price cap regulation
D) None of the above encourages cost cutting.
C
Economics
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Are the short-run and long-run average cost curves U-shaped for the same reason? Explain
What will be an ideal response?
Economics
If the price of a euro (the European currency) increases from $1.00 to $1.10, then, everything else held constant
A) a European vacation becomes less expensive. B) a European vacation becomes more expensive. C) the cost of a European vacation is not affected. D) foreign travel becomes impossible.
Economics