Price cap regulation improves cost control incentives relative to ...

[HCHenry]

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]

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

[HCHenry]

TYSM

[bigcheese9]

Thanks for the timely response, appreciate it