A rule that specifies the highest price that a regulated firm is permitted to set is called
A) rate of return regulation.
B) price cap regulation.
C) maximum price regulation.
D) average/marginal cost pricing.

Question

Quizplus · Accepted Answer

Price cap regulation is a rule that sets the maximum price a regulated firm can charge, allowing for adjustments based on inflation and efficiency factors.

A Rule That Specifies the Highest Price That a Regulated