Downtown Lansing is known as a dining destination for connoisseurs of fine food. The de-

mand curve for meals is given by QD=36P . In Lansing, there are three (price-taking)

restaurants supplying meals, each with a long-run cost curve given by C(q)=3q2 . Each

restaurant has a restaurateur's operating license issued by the city of Lansing, of which

there are only three.

a. Calculate each restaurant's supply curve, the market supply curve and the market equi-

librium price. (2 points)

b. What is the value of one of the restaurateurs licenses in Lansing. (2 points)