(D ) total costs? (E) profit or loss? (F) Will the monopoly need a subsidy? (G) If so, how much? 3. If cost-of-service regulation (fair-return price or average cost pricing) is imposed on this monop- olist, what will be the level of (A ) output? (B) price? (C) total revenue? (D ) total costs? (E) profit or loss? 4. What are the advantages and disadvantages of marginal cost pricing? 5. What are the advantages and disadvantages of cost-of-service regulation