Which form of monopoly regulation is most advantageous for the consumer?
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Monopoly regulation is the control of monopoly using different methods. Monopoly regulation is possible is possible through:
(i) Per Unit Tax
(ii) Lump of Tax
(iii) Price Control
Price Control is the most effective method in order give advantage to the consumer. If the prices are lowered, the goods and services are easily accessible to the people. This would eventually improve the standard of living of the people.
(i) Per Unit Tax
(ii) Lump of Tax
(iii) Price Control
Price Control is the most effective method in order give advantage to the consumer. If the prices are lowered, the goods and services are easily accessible to the people. This would eventually improve the standard of living of the people.
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Answer:
Price capping by regulators RPI-X
Explanation:
•The regulator can set price increases depending on the state of the industry and potential efficiency savings.
•If a firm cut costs by more than X, they can increase their profits. •Arguably there is an incentive to cut costs.
•Surrogate competition. In the absence of competition, RPI-X is a way to increase competition and prevent the abuse of monopoly power.
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