Regulation of monopolies that allows prices to reflect only the actual cost of production and no monopoly profits is referred to as

Question

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Cost-of-service regulation ensures that the prices charged by a monopoly reflect only the actual cost of producing and delivering the product or service, eliminating any monopoly profits. This type of regulation is designed to protect consumers from high prices due to a lack of competition while also allowing the monopoly to earn a reasonable return on its investment.

Regulation of Monopolies That Allows Prices to Reflect Only the Actual