Winter 2023 Homework 4 DUE DATE: Wednesday, March 8 1) A pie shop in a monopolistically competitive market has a demand curve for their pies given by P = 35 - Q. The variable costs of producing a pie are given by the equation VC = 5Q and so the marginal costs are constant at MC = $5. a) What is the pie shop's profit-maximizing output and price? b) If the pie shop is in a long-run equilibrium, what must its fixed costs be? 2) You work for the FTC and are studying the market for coffee shops in San Luis