When Regulated Using Rate of Return Regulation,who Benefits from the Practice

question 131

Multiple Choice

When regulated using rate of return regulation,who benefits from the practice of some natural monopolies to count sumptuous offices,free baseball tickets,golf excursions,and limousines as costs of production?

• A) stockholders
• B) managers of the monopoly
• C) customers of the monopoly
• D) regulators of the industry
• E) None of the above answers is correct.