Rate setting is the process of determining the price or fee for a service or product. This is commonly used in industries like utilities, telecommunications, and healthcare, where regulatory bodies or companies establish rates based on costs, demand, and market conditions. The goal is to ensure that prices are fair for consumers while allowing providers to cover their expenses and earn a reasonable profit. In many cases, rate setting involves public hearings and stakeholder input to gather opinions and data. For example, a public utility may propose a new rate structure, and customers can voice their concerns or support before the rates are finalized. This transparency helps maintain trust between providers and consumers.