Northstar Electric supplies electricity to the town of New Harmony. The demand for electricity is given by Q=50,000 -1000p where the price is in dollars per kwh. Northstar Electric's cost of production is given by C(q)=20,000+5q

(a). Is Northstar a Natural Monopoly? Explain fully?

(b). What is the price and output if the monopoly is unregulated? What is its profit?

(c). What is the efficient output? What is the extent of the deadweight loss?

(d). If the monopoly is regulated by setting a price-cap equal to the Average total cost (AVC), what would be the output produced and what would be the price? Note that the solution to the quadratic formula 0.001q^(2)-45q+20,000=0 is given by 44,551 and 449.