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Suppose CLP Holdings Limited is a natural monopolist with constant marginal cost. a Draw a diagram to indicate the protmaximizing level of output, the protmaximizing

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Suppose CLP Holdings Limited is a natural monopolist with constant marginal cost. a Draw a diagram to indicate the protmaximizing level of output, the protmaximizing price1 and the size of the prot (5 marks) h It'the govemmentwants to increase the market efficiency;r through price regulation, would you suggest the government setting the price equal to the rm's marginal cost or its average total cost\";I Explain in detail with the diagram in part (a). (Ill marks)

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