Most public utilities must petition regulatory commissions in order to obtain a rate increase. Which pricing constraint does this statement demonstrate?
A) demand for the product, class, or brand
B) newness of product in the life cycle
C) costs of production
D) type of competitive market
E) single product versus a product line

Question

Quizplus · Accepted Answer

This statement demonstrates the pricing constraint related to the type of competitive market, as public utilities often operate in regulated markets where they must seek approval from regulatory bodies to change prices.

Most Public Utilities Must Petition Regulatory Commissions in Order to Obtain