Earning-sharing regulation involves A) setting the monopoly's ...

[awywial]

Earning-sharing regulation involves
 
  A) setting the monopoly's price equal to its average total cost.
  B) requiring that the monopoly share its profits with its customers if the profits rise above a certain level.
  C) setting a maximum price the monopoly may charge and maintaining it for many years.
  D) assuming a natural monopoly will not charge a higher than profit-maximizing price.
  E) setting the monopoly's price equal to its marginal cost.

Question 2

When cost-push inflation starts, real GDP ________ and the unemployment rate ________.
 
  A) decreases; falls
  B) does not change; falls
  C) decreases; rises
  D) does not change; does not change
  E) increases; falls

[cascooper22]

Answer to Question 1

B

Answer to Question 2

C