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 a. MUY = 1 Every McDonald's franchise has the following production function for Jr Chickens: JC = 4K^(1/2) + 2L^(1/2) MPK = 2/K^(1/2) MPL = 1/L^(1/2) Calculate the profits for this McDonald's. After failing at lettuce, Pat is itching for a new business opportunity. Suppose they are thinking about using their trust fund to open another McDonald's franchise in the area. Would you recommend this? b. The market for Jr Chickens is competitive, with no barriers to entry or exit. Note there is no quantity restriction on the number of business licenses the City grants. In the long- run, how many McDonald's franchises will exist in this neighbourhood? What will equilibrium price and quantity be? c. Compare the short-run and long-run equilibria. Compare and comment on prices, quantity, costs (marginal and average) of production, and welfare (producer and consumer surplus). Note: some of these will require new calculations.