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ikadub [295]
3 years ago
6

A local regulator has calculated the average cost of production for the public water utility. Theregulator has allowed an adjust

ment for the normal rate of profit the firm should expect to earn, and then set the price that consumers can be charged accordingly. In this instance, the regulator has used which of the following?
A. cost-plus regulation
B. cost-plus analysis
C. price-cap regulation
D. market-price analysis
Business
1 answer:
Varvara68 [4.7K]3 years ago
8 0

Answer:

A. cost-plus regulation

Explanation:

When a local regulator calculates the average cost of production for the public water utility or any other service and allow an adjustment for the normal rate of profit the firm should expect to earn, and then set the price that consumers can be charged accordingly, this is known as cost-plus regulation.

It is usually carried out by the government.

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Answer:

C. not change, and the price received by sellers will not change.

Explanation:

Because previously there was a tax of the same ammoutn nothing will change. The sellers will will transfer the tax into the price therefore, the after-tax proceeds will not change netiher the selling price. The same effect of the consumer tax will occur again, some or the entire tax will be pay for the seller or the consumer based on the elasticity of the supply and demand curve.

The effect of chaging the law will not alter the economic reality of translate taxes into consumers

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3 years ago
Which of the following is NOT a benefit of safety and health programs?
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7 0
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John is a subunit manager at a large consumer packaged goods manufacturer. Every year, he and the managers of the other subunits
jeyben [28]

Answer:

Bottom-up.

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3 0
3 years ago
A firm has a tax burden of 0.9,a leverage ratio of 1.1, an interest burden of 0.6, and a return-on-sales ratio of 13%. The firm
Afina-wow [57]

Answer:

the firm's ROE is 20%

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The return on sales margin is 13%

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ROE = 0.9 * 0.6 * 0.13 * 2.62 * 1.1

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4 0
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yuradex [85]

Answer:

Decrease; Less

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When the market price of a product falls, the producer surplus will decrease as well.  

The lower market price implies that there will be less area between the supply curve and the market price of the product.

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