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Answer :
a. State utility commissions regulated telephone company prices using the rate base, rate of return regulation method.
- State utility commissions used the rate base, rate of return regulation method to regulate telephone company prices.
- This method ensures that the rates charged by a utility are fair both to the company and to the consumers.
- It allows the company to cover its operational costs, earn a reasonable return on investments, and maintain infrastructure while protecting consumers from excessively high prices.
Hence the correct option is (a).
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