One type of economic regulation often used in the United States by various public utility commissions allows prices to reflect only the actual cost of production and no monopoly profits. This type of economic regulation is known as

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Cost-of-service regulation limits prices to reflect the actual cost of production, including a reasonable return on investment, but not allowing for any monopoly profits. This type of regulation is commonly used by public utility commissions in the United States. Rate-of-return regulation allows for a fixed rate of return on investment, regardless of actual production costs, and may lead to excessive profits or underinvestment in infrastructure. Price per constant-quality-unit regulation and creative response regulation are not commonly used forms of economic regulation.

One Type of Economic Regulation Often Used in the United