Q1: Jane, an aspiring entrepreneur, is looking at starting up a home business growing organic turnips, turning it into Turnip Chips, and selling it at the local market. The market for Turnip Chips is served by many small suppliers, but Jane believes the current suppliers may be earning excess profits. She calculates the cost structure of her business, which she believes to be identical to all the other Turnip Chip suppliers operating in her area. Unfortunately, her (clumsy) housemate has spilt red wine all over her worksheet and only the following could be recovered: Note: This table is uploaded on Blackboard as "Tutorial 8 Q1.xlsx" Average Marginal total cost ($) cost ($) Quantity Fixed cost Average ($) variable cost ($) 0 10 1 2 3 4 5 6 22 2.66 6 4 6 4.4 8 7 10 Suppose the current price of Turnip Chips is $8. With the information available: (a) Should Jane enter into the Turnip Chip industry? Why or why not? (b) What will be the long-run competitive equilibrium price for Turnip Chips? (c) Could Jane earn a profit at this long-run price?