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 = 14 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) ~ a. If the City of Calgary requires all businesses to purchase a $20 registration license. What is the cost function for a Mcdonald's franchise? ~ b. Assume r = w = 1 for the rest of the question. McDonald's marginal cost to produce a Jr Chicken is: MC = JC/10. What is Mcdonald's supply function? ~ C. If there is one Mcdonald's in the neighborhood initially (short-run), what is the equilibrium price and quantity of Jr Chickens sold? ~ d. 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? ~