What Is the Meaning of the Phrase "Dilemma of Regulation

question 23

Multiple Choice

What is the meaning of the phrase "dilemma of regulation"?

• A)Natural monopolies achieve economies of scale but charge high prices when there is no government regulation; government regulation reduces prices but results in diseconomies of scale.
• B)Natural monopolies are profitable, but only if the government permits price discrimination; government regulation to restrict price discrimination reduces monopoly prices, but the regulation also reduces monopoly output.
• C)The fair-return price achieves allocative efficiency but may produce economic losses; the socially optimal price yields a normal profit but may not be allocatively efficient.
• D)The socially optimal price achieves allocative efficiency but may produce economic losses; the fair-return price yields a normal profit but may not be allocatively efficient.

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Definitions:

Fixations

An obsessive interest or feeling about someone or something, potentially leading to patterns of unhealthy or stalled development.

Saccades

Rapid, ballistic movements of the eyes that abruptly change the point of fixation.

Reading Understanding

The cognitive process of deciphering symbolic language to comprehend the intended message or information.

Reading Speed

The rate at which a person can read and comprehend text, which can vary greatly among individuals and can be influenced by practice and reading strategies.