Experience with Public Regulation of Monopolies Indicates That

question 24

Multiple Choice

Experience with public regulation of monopolies indicates that

• A) on the average, regulated prices are clearly lower than unregulated prices of the same item.
• B) regulation provides a stronger set of incentives than competitive markets for firms to increase efficiency.
• C) a decision to base a fair rate of return on either historical cost or replacement cost yields the same pricing result.
• D) most public utility regulation should be in the hands of federal rather than state commissions.
• E) if a firm is guaranteed a fixed amount of profit, it will be less efficient than if its profits depend on how efficiently it operates.

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Definitions:

Micro-aggressions

Subtle, often unintentional, forms of prejudice or discrimination against members of a marginalized group.

Hostile

Showing or feeling opposition or dislike; aggressive.

Grandchildren

The children of one's son or daughter, representing the next generation in a family lineage.

Live

To be alive or exist; in broadcasting, it refers to a real-time transmission of an event.