Question: Hi I really need an answer key to this problem. I want to my sure my answers and process are correct 27;) _ _ .

Hi I really need an answer key to this problem. I want to my sure my answers and process are correct

Hi I really need an answer key to this problem. I want

27;) _ _ . _ . y RemainingE The table below shows the total variable costs faced by Arlo's Eye Care for different quantities of reading glasses sold. 1 hr. 30 m, Arlo's Eye Care sells reading glasses in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $33 per unit, and the total xed cost is $30. (2 points) a. Identify the prot-maximizing quantity. Explain using marginal analysis. (1 point) b. Calculate the economic prot at the profit-maximizing quantity you identied in part (a). Show your work. (2 points) c. Based on your answer to part (b), will the number of rms in the industry increase, decrease, or stay the same in the long run? Explain. (2 points) d. The income elasticity of demand for reading glasses is 1.4, and the cross-price elasticity of demand for sunglasses with respect to the price of reading glasses is -0.75. Based on your answer to part (c), what will happen to the demand for sunglasses? Explain. (4 points) e. Now assume that the market in which Arlo's Eye Care operates is a monopoly, with a prot-maximizing price of $40 per unit. (2 points) i. Suppose the government imposes an annual tax of $2,000 on Arlo's Eye Care, regardless of how many pairs of glasses they sell. Will the prot-maximizing quantity of reading glasses for Arlo's Eye Care increase, decrease, or stay the same in the short run? Explain. (2 points) ii. Suppose Arlo's Eye Care were able to charge each customer a price for reading glasses equal to their willingness to pay. Would the deadweight loss in the market increase, decrease, or stay the same as a result

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