Which of the Following Is NOT a Limitation That Regulators

question 136

Multiple Choice

Which of the following is NOT a limitation that regulators face when they implement average cost pricing?

• A) Decisions are political and often influenced by special interests.
• B) Firms do not cover their opportunity costs for all resources.
• C) The accurate calculation of a firm's costs is difficult.
• D) Average cost pricing provides little or no incentive for firms to keep costs down.

---

Definitions:

Broaden-and-build Theory

A psychological theory suggesting that positive emotions expand one’s awareness and encourage novel, varied, and exploratory thoughts and actions.

Affect-as-information Hypothesis

A theory suggesting that individuals use their emotional states as information in making judgments and decisions.

Emotionally Affected

Experiencing an impact on one's mood or feelings due to an external event, situation, or interaction.

Predict

The act of stating or estimating that a specified event will happen in the future based on existing data or patterns.