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this is my question A friend of yours is thinking of opening a photo print lab in the perfectly competitive market of Nolita and would

this is my question

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A friend of yours is thinking of opening a photo print lab in the perfectly competitive market of Nolita and would like your advice. She tells you that the market demand for photo prints in Nolita is given by: She also tells you that in the short run, there are 8 identical photo print labs operating in Nolita, and the short-run total cost function of an individual lab is: C(q)=%+q+q?. Price is measured in dollars per print. Quantities are measured in thousands of prints per week. The notation \"q\" is used to indicate the output supplied by a single lab whereas the notations \"Qd\" and \"QS\" are used to indicate demand and supply for the whole market, respectively. (a) Derive the short-run average total cost, average variable cost, and marginal cost curves. Show the range of output values in which a lab enjoys economies of scale, the range in which a lab suffers diseconomies of scale, and the output levels at which the average total cost and the average variable cost are minimized, respectively. What are the average total cost and the marginal cost at the output at which average total cost is minimum? (b) Using your answers at point (a) above, compute the short-run supply curve for a single lab. (c) What is the short-run market supply Curve? (d) What is the short-run equilibrium? At this price, do the existing labs make money? (e) Based on your answers at point (d) above, would you advise your friend to open a lab in Nolita? Explain

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