Of the Following,which Is Not an Economic Rationale for Public

question 3

Multiple Choice

Of the following,which is not an economic rationale for public utility regulation?

• A) production process exhibiting increasing returns to scale
• B) constant cost industry
• C) avoidance of duplication of facilities
• D) protection of consumers from price discrimination
• E) none of the above

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Definitions:

Marketable Securities

Short-term financial instruments that are easily convertible into cash, such as government bonds or certificates of deposit.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Lockbox Services

Banking services that speed up the collection of payments from customers by using a special post office box accessible by the bank.