$2,140 Evan's Hat Store sells hats in a perfectly competitive market with a downward sloping demand curve and upward sloping supply curve. The market price is $120/hat. A. Calculate the average fixed cost of producing 5 hats. Show your work. B. Identify the profit maximizing quantity. Explain using marginal analysis. C. Calculate the economic profit at the profit maximizing quantity you determined in Part B. Show your work. D. Based on your answer to Part C, will the number of firms in the industry increase, decrease, or stay the same in the long run? Explain. E. Based on your answer to Part C, will the market price increase, decrease, or stay the same in the long run? Explain. F. The income elasticity of demand for hats is 2.5 and the cross price elasticity of demand for shoes with respect to the price of hats is -0.4. Based on your answer to Part E, what will happen to the demand for shoes? Explain. G. Now assume that the market in which Evan's Hat Store operates is in long run equilibrium. i. Suppose the rent paid by Evan's Hat Store decreases. Will Evan's Hat Store's profit maximizing quantity of hats increase, decrease, or stay the same in the short run? Explain.