The authors examine, in a simplified model without uncertainty, the response of a regulated firm to inflation in the cost of capital equipment. This model firm is assumed to be constrained to meet a given demand schedule, and to realize a prescribed rate of return on capital; the firm's revenue requirements include depreciation based on original cost.
|Original language||English (US)|
|Number of pages||15|
|Journal||Bell J Econ|
|State||Published - Jan 1 1976|
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