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Firms under cost - plus regulation have an incentive to generate: Firms under cost - plus regulation have an incentive to generate: Lower costs. Larger

Firms under cost-plus regulation have an incentive to generate:
Firms under cost-plus regulation have an incentive to generate:
Lower costs.
Larger levels of output.
Higher costs by building large factories or employing many staff.
Higher costs by investing in research and development.

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