Rate of return regulation

Assignment Help Business Management
Reference no: EM132263066

Most public utilities (gas, electricity, water, and local telephone companies, for instance) are subject to rate of return regulation, under which a firm is allowed to choose its price, subject to its proving that it is not earning too much money. Typically, the firm is allowed to cover its expenditures for labor and material exactly and to earn a "fair" rate of return on its capital investment. Can you think of any problems with this sort of regulatory scheme? In particular, what do you think that this plan does to the firm's incentives to substitute capital for labor?

Reference no: EM132263066

Questions Cloud

Explain changes in workforce participation : Explain changes in workforce participation for women with children. What legislation exists related to work and family?
Do you know men who are uncommitted workers : Do you know women who are uncommitted workers? Do you know men who are uncommitted workers?
Great depression not the great recession : The Balanced Budget amendment (requiring the Federal government to balance its budget annually), sounds good... or is it? Lets look at question one
Create a document containing a brief reflection to support : Create a document containing a brief three-paragraph reflection to support the rationale for each area of the SWOT analysis.
Rate of return regulation : Most public utilities (gas, electricity, water, and local telephone companies, for instance) are subject to rate of return regulation, under which a firm
Discuss what you see as major strengths and weaknesses : Discuss what you see as major strengths and weaknesses of the U.S. health system based on the above website reviews. For your initial post, provide a one.
Type of accident is governed by strict liability : This type of accident is governed by strict liability, so the injurer is legally responsible, but it may be difficult to prove in court that he caused the harm.
What additional information would you need : Should you continue to fly the plane? Why might your answer depend on the decision time frame, and what additional information would you need?
Evaluate the relative value of each organization services : Identify four organizations in a community that deliver primary health care. These must be 4 different organizations and not one agency offering 4 different.

Reviews

Write a Review

Business Management Questions & Answers

  Calculate portfolio var

Calculate portfolio VAR for (a)

  Emerging in the field of digital media

New trends and tools are continuously emerging in the field of digital media. Discuss the advantages of these trends and tools for a digital media professional.

  What is trust on an insecure networkif one considers a more

what is trust on an insecure network?if one considers a more complex case where modern business changes so quickly and

  Products in the market with dignity and respect

To promote, enrich and grow our customers brand and products in the market with dignity and respect according to their expectations.

  Economies of scale vs economies of scopeexplain what is the

economies of scale vs economies of scopeexplain what is the difference between economies of scale and economies of

  Targets and building a brand abroad

What are some of the challenges of understanding new targets and building a brand abroad?

  Description of employee benefitsmemo to upper management

description of employee benefitsmemo to upper management detailing the benefits available to employees in the position

  Performance tests are so sensible and efficient

If performance tests are so sensible and efficient shouldn't they be used in all selection situations why or why not.

  Fall of arthur andersen

Read "Fall of Arthur Andersen" case study and answer the following discussion questions:

  Organizations stretched their organizational resources

Do you feel that during the most recent economic times organizations stretched their organizational resources as far as they could?

  Perspective of the company-current or potential customer

What do you personally know about UPS and how does this impact your perspective of the company as a current or potential customer.

  Development and implementation of an information

How does the use of risk analysis facilitate the development and implementation of an information security policy together with its accompanying standards

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd