Price cap regulations are intended to let monopolists keep some of the profits they generate if they lower their costs.

Question

Quizplus · Accepted Answer

Price cap regulations are a regulatory tool used to allow monopolistic businesses to generate profits while setting a maximum limit on the amount they can charge for their products or services. By doing so, businesses can retain some of the cost savings they achieve while also keeping the cost of goods affordable for consumers.

Price Cap Regulations Are Intended to Let Monopolists Keep Some