Fair-returns pricing describes a situation in which government regulation of price sets the monopolist's price at ________.

Name: Fair-returns pricing describes a situation in which government regulation of price sets the monopolist's price at ________.
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Fair-returns pricing, also known as rate-of-return regulation, sets the price at a level where the monopolist can cover all its costs, including a normal profit. This is achieved by setting prices equal to average total cost.

Fair-Returns Pricing Describes a Situation in Which Government Regulation of Price