2 The figure above shows the demand curve(Demand) for Sasse handbags. Sassehandbags are produced by a monopolist;Sasse Inc., with marginal cost (MC) equal to10. However, the production of thehandbags generates pollution. Economistshave calculated the cost to society of thispollution to be 10 per handbag. The SMCcurve is the social marginal cost of SasseInc's handbag production.Assume that Sasse wants to maximizeprofit. Enter your answers in wholenumbers.2P. If Sasse is free to pollute, how many handbags will be produced?2P. What is Sasse's profit at this production level?2P. What is the socially optimal quantity?2P. What is the deadweight loss when Sasse produces its profit maximizingoutput?Suppose that Sasse handbags were produced by a competitive industry,and each fiim has MC equal to 10.2P. How many handbags will be produced in competitive equilibrium?2P What is the deadweight loss at this production level? Price4035302520-SMC1510MCDemand100200300400500600700800900Quantity5.

se inc., margina 10. However, the production of th handbags generates pollution. Ec have calculated the cost to societ pollution to be 10 per handbag. T curve is the social marginal cost o Inc's handbag production. Assume that Sasse wants to maxi profit. Enter your answers in whol numbers. 2P. If Sasse is free to pollute, how many handbags will be pro 2P. What is Sasse's profit at this production level? 2P. What is the socially optimal quantity?