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.
Answer: D
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