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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.

  1. 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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