Which of the following is not a limitation that regulators face when they implement average cost pricing?
a. Average cost pricing provides little or no incentive for firms to keep costs down.
b. The accurate calculation of a firm's costs is difficult.
c. Decisions are political and often influenced by special interests.
d. All of the preceding are limitations faced by regulators implementing average cost pricing.
Ans: d. All of the preceding are limitations faced by regulators implementing average cost pricing.
Economics
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