Parveen restrings tennis racquets.Her fixed costs are $1,000/month, and it costs her $15 of labour to string one racquet.The table below shows the demand schedule for Parveen's Restringing Services.

Price

($/racquet)

Quantity

(racquets / month)

25

0

20

10

15

20

10

30

5

40

0

50

a)Calculate Parveen's profit-maximizing price, output, price and economic profit, show your work with a chart (8 points)

b)Do you expect other firms to enter the tennis racquet restringing business and compete with Parveen?(2 pts) Why or why not? (2 pts)

c)What will happen to demand for Parveen's restringing services in the long run? (4 pts)

d)What happens to Parveen's economic profit in the long run? (4 pts)