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2. Consider a natural monopoly with the total cost function AC(Q) = F + cQ, where F > 0, c > 0. Suppose that the

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2. Consider a natural monopoly with the total cost function AC(Q) = F + cQ, where F > 0, c > 0. Suppose that the value of fixed cost F increases to F, > F. Explain how this change affects (increase/decreaseo change) the optimal monopoly price p and quantity Q if: a) the monopoly is regulated to achieve the maximum social welfare with subsidies.b} the monopoly is regulated to achieve the maximum social welfare without subsidies

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