A form of regulation that controls a firm's prices and profits based on its costs and capital investments is called _____ regulation.

Question

Quizplus · Accepted Answer

Rate of return regulation allows a firm to cover its costs and make a reasonable profit based on its investments and expenses. This form of regulation is commonly used for utilities and other industries where companies are allowed to operate as monopolies.

A Form of Regulation That Controls a Firm's Prices and Profits