Rate of return regulation is most similar to
A) a marginal cost pricing rule.
B) an average cost pricing rule.
C) an average variable cost pricing rule.
D) an inflation cost pricing rule.

Question

Quizplus · Accepted Answer

Rate of return regulation is most similar to an average cost pricing rule because it allows firms to cover their costs, including a normal profit, by setting prices based on average total costs.

Rate of Return Regulation Is Most Similar to