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Author Question: Under a price cap regulation, the regulated industry has an incentive to A) operate efficiently ... (Read 55 times)

naturalchemist

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on: Jun 29, 2018
Under a price cap regulation, the regulated industry has an incentive to
 
  A) operate efficiently and not inflate its costs.
  B) inflate costs.
  C) decrease its output.
  D) None of the above answers is correct.

Question 2

Why do poor countries often have lower rates of economic growth than richer countries?
 
  What will be an ideal response?


sylvia

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

If a large part of a country's population is poor, it is very difficult to forgo current consumption to invest in research and development of new technologies or new capital equipment. With less investment, the rate of economic growth in the country will be lower.


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