what is a revenue cap regulation 
revenue cap regulation seeks to limit the amount of total revenue that can be earned by a firm operating in an industry with no or few other competitors an industry such as this where one or a few companies control the entire production and sale of a good or service is known as a monopoly or a concentrated industry revenue cap regulation is a form of incentive regulation that uses rewards and penalties and allows producers some discretion to reach the desired outcome for society revenue cap regulation is common in the utility sector which includes many industries with monopolies sanctioned by a government or franchised monopoly industries 