PS5.4.5 Attached photo for reference. Now suppose that the government of Mass. offers solar subsidies to 10 bicycle manufacturers. These subsidies are for $80 and the manufacturers revive subsidies as long as they construct a bicycle manufacturing plant using newly-invented solar tech (I.e technology 1 referenced in attachment). Define the new MC.Options for MC1(q)=A. 1+4q+ (32/9)B. 1+ 8qC. 1+2q - (48/q)D. 1+ 4qE. None of the above

2.0/2.0 points (graded) Despondent over the Red Sox's terrible season, Prof. Gruber decides to quit his day job and start a bicycle manufacturing firm in Kendall Square. As he starts looking into the bicycle manufacturing industry, he realizes it has some interesting features. First, he realizes that it operates as a competitive industry. Second, he finds that there are two technologies used by firms in the industry. Technology 1 uses solar power, and has a cost function C' (q) = q + 4q' + 32 for q > 0. Technology 2 uses electricity from the grid and is more efficient, with a cost function C2 (q) = q + 2q2 + 32 for q > 0. Assume that we are in the long run, so firms using both technologies can shut and leave the market at 0 cost, so that C (0) = 0 for both technologies