In some cases, the government will regulate price rather than attempt to dismantle a monopoly or encourage

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In some cases, the government will regulate price rather than attempt to dismantle a monopoly or encourage new participants. This is often the case for natural monopolies, or industries in which a firm's long-run average total cost falls continuously as output increases. Consider a utility firm that provides electricity to a town with significant fixed costs (generation and transmission). Suppose the following graph describe the demand and supply/cost curves of electricity in the town. What happens if a regulator forces the utility to provide the "efficient" level of electricity where "LMC = demand"? Is the price cap sustainable? Explain.