Question

Regulations that permit a regulated firm to cover its costs and to make a normal level of profit are commonly referred to as

Answer 1

cost plus regulation

Step-by-step explanation:

Cost plus regulation is generally used by the government to regulate monopolies (mainly natural monopolies like utilities, and others). The price that the monopoly can charge for its goods or services is set by the government and it should generally cover all of the company's costs plus allow it to make a "normal" profit.