One Reason Regulators Push for Higher Prices in an Industry

question 47

Multiple Choice

One reason regulators push for higher prices in an industry is to

• A)prevent excess profits in the industry.
• B)protect the public from excessively low prices.
• C)encourage usage of the good or service.
• D)protect against the demise of existing firms.

---

Definitions:

Noncash Investing

Transactions that involve the acquisition or disposal of non-cash assets, such as property, plant, and equipment, through means other than cash payments.

Operating Activities

Activities directly related to the business's primary operations, such as manufacturing, distributing, marketing, and selling a product or service.

Gain

The profit realized from the sale of assets or investments when the selling price exceeds the purchase price.

Indirect Method

A way of reporting cash flows from operating activities that begins with net income and adjusts for changes in balance sheet accounts to calculate cash provided by operations.