Rate regulation provides incentives for public utility managers to

A) artificially decrease the asset base.
B) artificially increase the asset base.
C) artificially decrease operating expenses.
D) artificially decrease taxes.

Rate Regulation

The governmental or regulatory authority's control over the pricing of certain services and products.

Public Utility Managers

Individuals responsible for overseeing the operations and maintenance of public utilities, ensuring services like water, gas, and electricity are provided efficiently.

Asset Base

The total value of all assets owned by an individual or entity, which can include cash, investments, property, and other tangible and intangible items.