A dilemma of regulation is that: a) the regulated price that achieves allocative efficiency is also likely to result in persistent economic profits. b) the regulated price that results in a "fair return" restricts output by more than would unregulated monopoly. c) regulated pricing always conflicts with the "due process" provision of the Constitution. d) the regulated price that achieves allocative efficiency is also likely to result in losses.

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Business

Lyric Osborne

26 March, 16:13

A dilemma of regulation is that: a) the regulated price that achieves allocative efficiency is also likely to result in persistent economic profits. b) the regulated price that results in a "fair return" restricts output by more than would unregulated monopoly. c) regulated pricing always conflicts with the "due process" provision of the Constitution. d) the regulated price that achieves allocative efficiency is also likely to result in losses.

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Abraham Butler · Answer 1

d) the regulated price that achieves allocative efficiency is also likely to result in losses.

Explanation:in this dilemma the price increase likewise total revenue, there is profit because its monopolistic. But when there is chance for entry of competitor to penetrate there is danger of great loss.