Rate of return regulation serves the selfinterest of a regulated business if

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Part $1$

A$.$

the regulated business exaggerates its costs of production.

B$.$

the rate of return is set too low.

C$.$

there is a competitive struggle to determine which business will be chosen to supply the service.

D$.$

price is set equal to average total cost.

E$.$

there is a great demand for the service.