Suppose the government allows restaurants to open but requires customers to be socially distanced, reducing the number of tables and the maximum number of customers who can be served.

1. How would you expect the social distancing policy to affect the marginal and average cost of serving a meal?
2. How would you expect the social distancing policy to affect the price charged for a restaurant meal?
3. What would you expect to be the effect of the social distancing policy on entry and exit in the restaurant sector?