Your firm's operating costs are given by C=3800+100Q+5Q^2. The firm's total assets are given by TA=1000+50Q, and the firm is financed 30% with debt. The equity investors require a 20% rate of return, the cost of debt is 10%, and the tax rate is 25%. You have chosen to produce a Q of 20, with a price of 425.

a. At this P and Q combination, what are the values for pi, R, and theta?

b. Suppose you are now regulated, and regulators force you to produce Q=20 with P=375. With everything else still the same, what now are the values of pi, R, and theta?

c. You want to remain in the industry with the required Q of 20 and P of 375. You decide to increase L to give a value for pi that will enable you to stay in the industry. Assuming that ke and kd stay the same as in part a, what new value for L is necessary?