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(3) Suppose that Tommy Hilger's marginal cost of a jacket is $200 and at one of the rm's shops, total xed costs is $500 a day. The prot maximizing number of jackets sold in this shop is 30 a day. Then the shops nearby from other retailers start advertising their jackets. The Tommy Hilger shop decides to spend $1500 a day advertising its jackets, and its prot maximizing number of jackets sold jumps to 60 a day. (i) What is the shop's average total cost of a jacket sold before the advertising begins? ATC = (FC + VC) / Q (ii) And after advertising? (iii) Before advertising: Suppose that the price elasticity of demand is 2. Can you say what happens to the price of a Tommy Hilger jacket? And to the markup? Please, compute the amount of maximal prots. (iv) After advertising: Suppose that the price elasticity of demand equals 6. Can you say what happens to Tommy's economic prot