A power company which is a natural monopolist supplying electricity will have a supply (marginal cost) curve and face a downward sloping demand curve with a corresponding a marginal revenue curve. a. In the absence of regulation, where will the firm set the price of electricity to maximize its profits? b. Will this price be above or below the competitive market price and why? c. Will this quantity be above or below the competitive market quantity and why? d. What happens to capital stock of this company in the long run, if the government forces this company to sell electricity at the competitive market price. e. Where, in terms of standard curves associated with demand and supply, could a public utility set the lowest price of electricity that avoids this problem. NOTE: It may be helpful to you to draw a graph on scratch paper in answering this question.