What is the meaning of the phrase "dilemma of regulation"?

Multiple Choice

The competitive price achieves allocative efficiency but may produce economic losses; the normal profit price yields a normal profit but

Natural monopolies are profitable but only if the government permits price discrimination; government regulation to restrict price discrin monopoly output.

Natural monopolies achieve economies of scale but charge high prices when there is no government regulation; government regulation

The normal profit price achieves allocative efficiency but may produce economic losses; the competitive price yields an economic profit