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Why Are the Prices of Some Regulated Industries Often Higher

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Why are the prices of some regulated industries often higher than they would be if there were no regulation?


Definitions:

Income and Loss Sharing

A method often used in partnership agreements where profits and losses are distributed among partners according to pre-agreed proportions.

Creditors' Claims

Rights of lenders to claim assets of a debtor in case of default.

Income and Loss Ratio

Usually referred to as the "loss ratio" in insurance, it is a metric that compares losses (claims paid and adjustment expenses) to premiums earned.

Capital Account

The capital account in accounting represents where all transactions involving the purchase and sale of capital assets are recorded, often reflecting the net worth of a business.

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