This is my question;

1. (11 points) BCAqua is the natural monopoly in charge of providing electricity in the province of Irish Columbia. It faces the following aggregate inverse demand: p(q) : 50g'2. It has a total cost equal to TC'(q) : 5g + 20. (a) What are the prot-maximizing quantity qM and price pM? Compute the corresponding prots Tl'M. (2 points) (b) The government wants to limit the power of BCAqua so it forces it to charge marginal cost pricing. What are the correSponding price 13*, quantity q* and prot 7r*? What is the problem with this policy? (3 points) (c) Without any calculations, what price would make BCAqua break even? (i.e., make BCAqua's prots equal to 0. Hint: decompose the prot function). (2 points) (d) A common regulation measure is to x an amount of prot a monopolist can make and the monopolist has to charge the corresponding price (called cost-plus regulation). What is the caveat of such a measure from a productive efciency point of view? (2 points) (e) Another regulation measure is to impose a limit on the price a monOpolist can charge (called price cap regulation). How can that measure solve the productive efciency problem mentioned in the previous question? (2 points)