Author Question: Price cap regulation improves cost control incentives relative to rate-of-return regulation. ... (Read 54 times)

HCHenry · **on:** Jul 1, 2018

Price cap regulation improves cost control incentives relative to rate-of-return regulation.

Indicate whether the statement is true or false

Question 2

____________ is the process of making a choice between two or more alternatives.

a. Bargaining
b. Trading
c. Decision making
d. Goal setting

stillxalice · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

T The price cap comes from outside the firm, and because anything it can do to improve its profit will lead to gains it can keep, the firm has more cost control incentive.

Answer to Question 2

C