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Providers set charges on the basis of _________ in competition-driven charging.

A. Cost and revenue considerations
B. Market competition
C. Administrative efficiency
D. Historical pricing

User Apen
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Final answer:

Providers set charges on the basis of market competition in competition-driven charging.

Step-by-step explanation:

In competition-driven charging, providers set charges on the basis of market competition.

Regulators of public utilities traditionally followed two approaches to set prices: cost-plus regulation and price cap regulation. Cost-plus regulation involved setting prices based on average costs of production plus a normal rate of profit, while price cap regulation set a price that the firm can charge over a specified period of time, often with declining prices. Both approaches aimed to balance the interests of consumers and the broader social interest.

Ultimately, in competition-driven charging, providers determine charges based on market forces and the level of competition in the industry.

User Jmazin
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