Which of the following best describes the pricing objective typically used by regulated utilities such as gas and electricity?

Question

Quizplus · Accepted Answer

Regulated utilities typically use investment pricing, which aims to cover the costs of infrastructure and maintenance while earning a fair rate of return on investment. The price is set by regulatory agencies and may not be based on market competition or penetration strategies. Skimming and competitive pricing are typically used by businesses in more competitive, non-regulated industries.

Which of the Following Best Describes the Pricing Objective Typically