3. The table below shows the total variable costs faced by Nelson's Sporting Goods Store for different quantities of ice skates sold. Quantity Total Variable Cost 1 $60 2 $123 $187 4 254 5 $323 6 $405 7 $489 8 $579 $675 10 $777 Nelson's Sporting Goods Store sells Ice Skates in a perfectly competitive market. The market has a downward-sloping demand curve as well as an upward-sloping supply curve. The total fixed cost is $42 and the market price is $75 per unit. a. Identify the profit-maximizing quantity. Using marginal analysis, explain your reasoning. b. Calculate the economic profit at the profit-maximizing quantity identified in part (a). Show your work. c. Calculate the average fixed cost of producing seven units. Show your work. d. Based on the answer to part (b), in the long run, will the number of firms in the industry increase, decrease, or stay the same? Explain. e. Based on the answer to part (b), in the long run, will the market price increase, decrease, or stay the same? Explain. f. The income elasticity of demand for Ice Skates is 0.5, and the cross-price elasticity of demand for Good P with respect to the price of Ice Skates is 0.3. Based on the answer to part (e), what will happen to the demand for Good P? Explain. g. Now assume the market that Nelson's Sporting Goods Store operates in is in long-run equilibrium at a price of $70 per unit. i . If annual property taxes for Nelson's Sporting Goods Store increase by $5,000. Will the profit-maximizing quantity of Ice Skates for Nelson's Sporting Goods Store increase, decrease, or stay the same in the short run? Explain. ii. Now, instead, assume the government enacts a price floor at $90 on the market for Ice Skates. As a result of the price floor, will deadweight loss in the market for Ice Skates increase, decrease, or stay the same in the short run? Explain