Edit: Zhen Lin incisively observes in a comment below that the category of compact Hausdorff spaces is monadic over the category of sets, hence is cocomplete. That answers the first part of question 1 ...
According the the nLab, the category of compactly generated (CG) spaces is not locally cartesian closed. So if $A$ is a CG space and $C$ a CG space above $A$, $C$ may not be exponentiable. What if we ...