Regulation that specifies that a firm's profits must be shared with its customers if the profit rises above a target level is called
A) rate of return regulation.
B) minimum price regulation.
C) earnings sharing regulation.
D) average cost pricing.

Question

Quizplus · Accepted Answer

Earnings sharing regulation requires firms to share profits with customers if profits exceed a certain target, ensuring customers benefit from the firm's financial success.

Regulation That Specifies That a Firm's Profits Must Be Shared