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Consider that a platform for online delivery of food is now available for all restaurants. To join this platform, all restaurants must pay an annual
Consider that a platform for online delivery of food is now available for all restaurants. To join this platform, all restaurants must pay an annual fee, which is a fixed sum, independent of whether it produces any output. Let's assume that all restaurants join this platform.
- How does this fee affect each firm's fixed, marginal, and average costs?
b. What would happen to the supply of restaurants?
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