In the above figure, if the natural monopoly is regulated and a marginal cost pricing rule is followed, then the consumer surplus will be

The unemployment rate generally ________ during recessions and generally ________ during expansions

A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) increases; does not change

Incentive-based regulations provide polluters no incentive to reduce pollution and are thus not used often.

A. True B. False C. Uncertain