Please help me solve this worksheet and check the problems I've already done (in blue).

AP MICRO ASSM 1: PC PDCT MKT NAME: Nadeev Alam (d) Based on your answer to part (b), will the number of firms in the industry increase, decrease, or stay the same in the long run? Explain. The table below shows the total variable costs faced by Karen's Kaleidoscope Store for different The number of firms in the industry will decrease. Explain: Economic profits are negative. . quantities of Good N sold (e) Based on your answer to part (b), will the market price increase, decrease, or stay the same Quantity Total Variable Cost in the long run? Explain. 1 $30 Explain' N $70 (f) The income elasticity of demand for Good N is -1.8, and the cross-price elasticity of demand $120 for kaleidoscopes with respect to the price of Good N is -0.5 .Based on your answer to part (e), what will happen to the demand for kaleidoscopes? Explain. $180 $250 Explain $340 g) Now assume that the market in which Karen's Kaleidoscope Store operates is in long-run equilibrium at a price of $83 per unit $435 () Suppose annual property taxes for Karen's Kaleidoscope Store decrease by $2,500. Will the $535 profit-maximizing quantity of Good N for Karen's Kaleidoscope Store increase, decrease, or stay the $645 same in the short run? Explain The profit-maximizing quantity of Good N would increase. Explain: A fixed cost would decrease so 10 $760 the store will produce more of the good. Karen's Kaleidoscope Store sells Good "N" in a perfectly compel..e market with a downward- ii) Instead suppose the government imposes a price floor at $75 on the market for Good N. Will sloping demand curve and an upward-sloping supply curve. The market price is $80 per unit, and deadweight loss in the market for Good N increase, decrease, or stay the same in the short run as a the total fixed cost is $300. result of the price floor? Explain. (a) Identify the profit-maximizing quantity. Explain using marginal analysis. Explain Quantity: 5 Explain: 5 units will be produced because when the store produces the 6" unit, marginal cost exceeds marginal revenue (price). (b) Calculate the economic profit at the profit-maximizing quantity you identified in part (a). Show your work. Profit: -$150 Calc: 5*[$80-(($250+$300)/5)] (c) Calculate the average fixed cost of producing 3 units. Show your work. AFC: $100 Calc: ($300)/3