One weakness of the Sherman Act is that it fails to clearly define restraint of trade. it applies only to foreign monopolies. O it applies only to the steel and railroad industries. None of these.Regulation of a natural monopoly that forces it to price and produce as if it were a competitive firm results in O a highly unstable marketplace. O higher profits for the monopoly. the market being instantly competitive. economic losses for the monopoly.The difference between cost-of-service regulation and rate-of-return regulation is that O the former uses average cost pricing and the latter uses marginal cost pricing. the former sets prices based on actual costs, and the latter focuses on setting prices such that the firm earns a normal rate of return. the latter sets prices first, and then the firm must keep costs in line if it wants to earn a profit, and the former sets price high enough to cover costs. the former uses marginal cost pricing and the latter uses average cost pricing