Question 1: Consider an industry in which all rms have identical cost functions, given by C(q) = 1n(1 + q) + (ln2 g) (e4 1). 1.1 Is this cost function globally concave, convex, or neither? Substantiate your answer. What does this tell you about the shape of the MC and AC' curves? Explain YOUI' answer . 1.2 Verify that AC is minimized at q = 1. Show your work and explain the steps you took. What is the longrun price in this industry? Explain your