1. Consider the market for pierogies in Pittsburgh, where the market demand for pierogies is summarized by the function: D(p) = 800 45p. Consider each of the pierogi shops to be an individual firm with the same cost function 607) = F + 2q2, where F represents fixed cost of renting a space from which to sell pierogies. and the variable costs reflect the cost of the labor involved in producing and selling pierogis. a. In the short-run leg. the six months following the signing of a lease for a space from which to sell pierogies) determine the quantity each pierogi shop would produce for any price in the market. In what way does your answer to part (a) depend on the fixed cost? Explain your answer in no more than two sentences. Suppose initially there are 20 shops selling pierogies in Pittsburgh. Determine the short-run market supply for pierogies. Find the short-run equilibrium price and quantity in the Pittsburgh pierogi market. How does this equilibrium depend on F? Give an expression for an individual pierogi firm's profits in the short run. Under what circumstances does each pierogi shop earn positive, negative, or 0 profits. How do the firm's profits depend on F? Explain. Now consider the Pittsburgh pierogi market in the long-run, that is a timeframe which allows for free entry/exit. Determine the output of each pierogi shop and the price in the market for which no firm will have an incentive to enter or exit. Assume F reflects exactly the amount spent by a pierogi shop on other inputs besides labor in the longrun. Using the equilibrium price you found in part (f), find the total quantity produced in the market in the long-run. How do these depend on F? Explain. How many pierogi shops will be in this market in the long run? How does this depend on F? [For simplicity assume the formula for number of firms produces an integer so you don't have to worry about rounding] In the longrun does each firm earn positive, negative, or 0 profits. How does this depend on F? Explain