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    Exam 8: Government and Markets
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    Fair-Return Regulation Tends to Decrease the Motivation for Public Utilities
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Fair-Return Regulation Tends to Decrease the Motivation for Public Utilities

Question 88

Question 88

True/False

Fair-return regulation tends to decrease the motivation for public utilities to reduce costs, because they can attain essentially the same profits irrespective of their cost-reducing efforts.

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