Natti is a dot-com entrepreneur who has established a Web site at which people can design and buy incredible sunglasses. Natti pays $4,000 a month for her Web server and Internet connection. The sunglasses that her customers design are made to order by another firm, and Natti pays this firm $50 a pair. Natti has no other costs. Table 1 shows the demand schedule for Natti’s sunglasses.

1. Calculate Natti’s profit-maximizing output, price, and economic profit.

2. Do you expect other firms to enter the market and compete with Natti?

3. What happens to the demand for Natti’s sunglasses in the long run? What happens to Natti’s economic profit in the long run?