1. Suppose that the daily market demand curve for movers in Hateld is Q(P) = 487.5 - 7.5P. Price (P) is measured in dollars per hour and quantity (Q) is measured in hours per day. The variable cost curve of a typical moving company is VC(Q) = .2Q2 + 5Q and the xed cost is 500. a) What is the average cost curves for a typical moving company? What is the marginal cost curve? What is the optimal scale of the moving company? What is the long run shut down point? Illustrate the AC and the MC in a diagram and indicate the optimal scale. b) If the industry in long-run competitive equilibrium then what is the price of an hour of moving services and the number of hours purchased per day in Hateld? Show that there are 6 rms in Hateld