A horse walks into a bar. The bartender says A horse walks into a bar. The bartender says Question 1. A horse walks into a bar. The bartender says, “Why the long face?” Thehorse says, “I am willing to buy as much beer as you will sell me, but Iam only willing to pay $3 for it.”1 The bartender has a total cost curve ofT C(q) = q^2 ? q.a) What is the Bartender's marginal and marginal cost?b) How many beers will the bartender sell the horse?c) Suppose the bartender also incurs a non-sunk fixed cost of $9 (electricity) if he chooses to open the bar. Would he choose to open if the horse is his only customer? Explain2. Consider a Popsicle stand that sells in a perfectly competitive market.The Popsicle stand has variable costs related to labor and materials of2q^2-1/2q It has mortgage on the stand that costs $5. Assume the marketis illiquid so that the stand could not sell its assets to another buyer. Ifit chooses to operate, it must pay $3 in electricity to keep the Popsiclesfrozen throughout the day.(a) What are the stand’s non-sunk ?xed costs? What are the stand’ssunk ?xed costs?(b) What is the supply curve for the Popsicle stand?(c) How many Popsicles will the stand produce if the price is $7.50?3. For each of these outcomes. Explain wheter it can be the long-run equi-librium:a) There are 20 firms each producing 8 units with TC(Q)=q^2-1/4q and P=20b) There are 100 firms each producing 1 unit with TC(Q)=4Q^3-1/2Q^2+Q with P=34/94. Consider the market for frozen concentrated orange juice, which is aconstant-cost industry. The long-run total costs of production are T C(Q) =Q^3 ? 2Q^2 + 4Q. The demand is given by Q = 80 ? 3P(a) What is the long-run equilibrium price?(b) How many ?rms will enter the market?(c) How much output will each ?rm produce?