文档介绍：本科毕业论文(设计)
外文翻译
外文出处 New York City
外文作者 Alfred
原文:
FAIR VALUE FOR RATE PURPOSES
In considering fair value for rate purposes it is important to bear in mind that the determination of fair value is a part of the process of determining a reasonable rate of charge. The content of fair value may therefore depend largely on our conception of what constitutes rate reasonableness. It will aid to a clearer determination of this intricate problem if for the moment we forget "fair value" and concentrate our attention on the fundamentals of a reasonable rate of charge. By "reasonable rate" as here used we mean the reasonableness of the rate schedule as a whole, and not the adjustment of the various specific rates that go to make up plete rate schedule. It is the total price pensation collected from the public for its entire service, rather than the price for any particular service or class of services. A reasonable rate of charge in this sense of a reasonable rate schedule is a rate that gives pany pensation for the entire service which it renders the public.
What, then, is pensation in the case of the appropriate and normally essful public utility enterprises?pensation is here equivalent to the normal cost of production. What other basis can there be for the determination of a fair price in the case of a virtual monopoly?
If modity can be freely and quickly produced, its market price will follow quite closely its cost of production. This must be so, because under the assumed conditions there could be no reason for paying more than the cost of production.
If modity may be freely produced, but only by specially trained workmen, a large fixed investment, and great business risks, the cost of production will still in the long run tend to limit market price. It is clear that the production of a modity
will not be permanently carried on unless the price received covers all the costs of production. Under petition it is also clear that a price higher than that nec