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roblem set 2 rted. Now 11 at 4:45pm uiz Instructions Question 1 15 pts Tinker, Evers and Chance, inc. (TEC) sells sunglasses to consumers worldwide. Annual demand for their products is given by $ D(p)=20,000 \times(50-p) $ and marginal cost is $ \$ 20 $. Tinker, Evers and Chance should charge $ \$ 35 $ $ \square $ and they will eam producer surplus of $ \$ $ [Select] $ \square $ $ \checkmark $. Now suppose that they can only sell 100,000 sunglasses per year. They should charge $ \$ $ [Seloct ] $ \sim $. Profit is lower by $ \$ $ [Select] $ \square $ with this constraint. Now suppose that TEC can lease a factory for $ \$ 1,500,000 $ per year and expand capacity to 400,000 per year. If they do so, profit will\$ [Select] $ \checkmark $ by $ \square $ [Select] $ \square $ ? $ \square $ $ \square $ $ \square $ . Question 2 20 pts Gontalon Dynamics offers multimedia consulting to mid-size businesses in the US and Europe. They have found that annual demand for engagements in

          roblem set 2
rted. Now 11 at 4:45pm
uiz Instructions
Question 1
15 pts

Tinker, Evers and Chance, inc. (TEC) sells sunglasses to consumers worldwide. Annual demand for their products is given by \( D(p)=20,000 \times(50-p) \) and marginal cost is \( \$ 20 \). Tinker, Evers and Chance should charge \( \$ 35 \) \( \square \) and they will eam producer surplus of \( \$ \) [Select] \( \square \) \( \checkmark \).
Now suppose that they can only sell 100,000 sunglasses per year. They should charge \( \$ \) [Seloct ] \( \sim \). Profit is lower by \( \$ \)
[Select] \( \square \) with this constraint.
Now suppose that TEC can lease a factory for \( \$ 1,500,000 \) per year and expand capacity to 400,000 per year. If they do so, profit will\$ [Select] \( \checkmark \) by \( \square \) [Select]
\( \square \) ?
\( \square \)
\( \square \)
\( \square \) .
Question 2
20 pts
Gontalon Dynamics offers multimedia consulting to mid-size businesses in the US and Europe. They have found that annual demand for engagements in

roblem set 2
rted. Now 11 at 4:45pm
uiz Instructions
Question 1
15 pts

Tinker, Evers and Chance, inc. (TEC) sells sunglasses to consumers worldwide. Annual demand for their products is given by D(p)=20,000 ×(50-p) and marginal cost is $ 20. Tinker, Evers and Chance should charge $ 35 □ and they will eam producer surplus of $ [Select] □ .
Now suppose that they can only sell 100,000 sunglasses per year. They should charge $ [Seloct ] ∼. Profit is lower by $
[Select] □ with this constraint.
Now suppose that TEC can lease a factory for $ 1,500,000 per year and expand capacity to 400,000 per year. If they do so, profit will$ [Select] by □ [Select]
□ ?
□
□
□ .
Question 2
20 pts
Gontalon Dynamics offers multimedia consulting to mid-size businesses in the US and Europe. They have found that annual demand for engagements in

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