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When a regulatory agency uses rate of return regulation, the Question content area bottom Part 1 A. regulated firm's profit must be maximized for the
When a regulatory agency uses rate of return regulation, the Question content area bottom Part 1 A. regulated firm's profit must be maximized for the market to be efficient. B. firm's managers have an incentive to inflate the firm's costs. C. regulated firm must receive a government subsidy. D. agency is able to eliminate the deadweight loss. E. the agency is using a form of marginal cost pricing
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