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:

Spontaneous Movements

Movements occurring without conscious control or external stimuli, often seen in early development or neurological conditions.

Motor Neurons

Neurons that transmit signals from the spinal cord to muscles, effectively converting neural messages into muscle movements.

Cervical

Cervical pertains to the neck region in the human body or the part of the spine known as the cervical spine, which comprises the seven vertebrae connecting the skull to the thoracic spine.

Lumbar

Referring to the lower part of the spine, specifically the five vertebrae between the rib cage and the pelvis.