9 Pat is a representative consumer in the neighbourhood market for Jr Chickens. Their utility function for JCs and all other goods is given by:

U (JC, Y ) = 10JC JC^2/ 2 + Y MUJC = 10 JC MUY = 1 Every McDonalds franchise has the following production function for Jr Chickens: JC = 4K^1/2 + 2L^1/2 M PK = 2/ K^1/2 MPL = 1/ L^1/2

f) Assume r = w = 1 for the rest of the question. McDonalds marginal cost to produce a Jr Chicken is: MC = JC/10. What is McDonalds supply function? g) If there is one McDonalds in the neighbourhood initially (short-run), what is the equilibrium price and quantity of Jr Chickens sold? h) Calculate the profits for this McDonalds. After failing at lettuce, Pat is itching for a new business opportunity. Suppose they are thinking about using their trust fund to open another McDonalds franchise in the area. Would you recommend this? i) The market for Jr Chickens is competitive, with no barriers to entry or exit. Also note there is no quantity restriction on the number of business licenses. In the long-run, how many McDonalds franchises will exist in this neighbourhood? What will equilibrium price and quantity be?