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
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