Economics B A-Level
Rate-of-return regulation
What Rate-of-return regulation means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Rate-of-return regulation
Check what you remember
Read the wording for your board, then hide it and explain Rate-of-return regulation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A method that allows a fair return on capital but may weaken the incentive to minimise costs.
Topics that use Rate-of-return regulation
- Business regulation (Pearson Edexcel A-Level)
Related terms
- Asymmetric information and market failure
- Consumer protection
- Consumer protection legislation and standards
- Franchising
- Market power
- Mergers and takeovers
- Natural monopoly
- Anti-competitive practices
Using Rate-of-return regulation in the exam
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