Regulation that is based on allowing prices to reflect only the actual operating cost of production is known as

Question

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Cost-of-service regulation allows prices to reflect the actual operating cost of production, ensuring that companies can cover their costs while providing their services. This type of regulation is commonly used in utilities and services where the goal is to make sure that the prices charged to consumers are based on the costs of providing those services, including both operating costs and a reasonable return on investment.

Regulation That Is Based on Allowing Prices to Reflect Only