Question
Explain the RPI-X as a form of price cap regulation and comment on the issues surrounding the determination of X and the duration for the
Explain the RPI-X as a form of price cap regulation and comment on the issues surrounding the determination of X and the duration for the price cap (regulatory lag). Also discuss the setting of a price cap in multi-product firms by examining the fixed versus the average revenue approach verbally and diagrammatically.
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
11th Edition
134519574, 9780134521046 , 978-0134519579
