critics of the regulation of natural monopolies contendthat: a. regulation incre

Question

critics of the regulation of natural monopolies contendthat: a. regulation increases theincentive of firms to lowercosts b. regulated firms may use the creative accounting to reducecosts, prices and profits c. when rates of return are based on the value of realcapital, an economic substutiution of labor for capital d. the industry may captue or control the regulatorycommission critics of the regulation of natural monopolies contendthat: a. regulation increases theincentive of firms to lowercosts b. regulated firms may use the creative accounting to reducecosts, prices and profits c. when rates of return are based on the value of realcapital, an economic substutiution of labor for capital d. the industry may captue or control the regulatorycommission

Explanation / Answer

(d) The Industry may capture or control the regulatorycommission

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