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The Luxxotica Group designs, distributes, and manufactures eyeglasses. It includes such recognizable companies such as LensCrafters, Sunglass Hut, Pearle Vision, and Glassescom. One of your
The Luxxotica Group designs, distributes, and manufactures eyeglasses. It includes such recognizable companies such as LensCrafters, Sunglass Hut, Pearle Vision, and Glassescom. One of your instructors recently bought a new pair of Ray Ban eyeglasses, paying around $1000 for the pair. Imagine below is the market for that particular style of Ray Bans. Calculate {1) Luxxotica's profit, (2) consumer surplus, and (3) deadweight loss. [Please note: the instructor who did not buy the glasses, thinks the other instructor is crazy to spend that much on something one of her kids will probably play with and break] 51000 $300 MC=AC
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