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a. the inefficiencies that result when regulators set public utility rates too high or too low.
b. the tendency toward natural monopoly in firms that have downward-sloping long-run average cost curves.
c. the9 to12 month time lag between recognition of a need for rate revision and action by regulatory commissions.
d. All of the above are correct.
The answer is : Option ( A )
My Answer Is Option " A " .
https://en.wikipedia.org/wiki/Averch–Johnson_effect
Wikipedia
The Averch–Johnson effect is the tendency of regulated companies to engage in excessive amounts of capital accumulation in order to expand the volume of ... option A
My answer is also option (A)
I agree with experts
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I come across this one first time and is a learning for me. I will go with the expert's answer herein.
option A _______________________________
The correct answer is...........a..........
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