Sony announces Smart Tennis Sensor Tennis racket maker Babolat introduced its smart racket Play Pure Drive in 2013. Smash and Shot Stats soon followed. Now Sony is partnering with Wilson to make Smart Tennis Sensor, a device that sits at the bottom of a racket's handle and tracks every metric and statistic that a tennis player or coach could need. Source: Gizmag August 22, 2014 Explain why the economic profit that Babolat and Sony make in this market is likely to be temporary. Draw a graph to illustrate the outcome in the long run. Show the excess capacity and markup in the long run. . 220- 200- 180- 160- 140- 120- 100- 80- 60- Price and cost (dollars per smart racket) MC ATC
Sony announces Smart Tennis Sensor Tennis racket maker Babolat introduced its smart racket Play Pure Drive in 2013. Smash and Shot Stats soon followed. Now Sony is partnering with Wilson to make Smart Tennis Sensor, a device that sits at the bottom of a racket's handle and tracks every metric and statistic that a tennis player or coach could need. Source: Gizmag August 22, 2014 Explain why the economic profit that Babolat and Sony make in this market is likely to be temporary. Draw a graph to illustrate the outcome in the long run. Show the excess capacity and markup in the long run. . 220- 200- 180- 160- 140- 120- 100- 80- 60- Price and cost (dollars per smart racket) MC ATC
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 6SQP
Related questions
Question
![Sony announces Smart Tennis Sensor
Tennis racket maker Babolat introduced its smart racket
Play Pure Drive in 2013. Smash and Shot Stats soon
followed. Now Sony is partnering with Wilson to make
Smart Tennis Sensor, a device that sits at the bottom of a
racket's handle and tracks every metric and statistic that a
tennis player or coach could need.
Source: Gizmag August 22, 2014
Explain why the economic profit that Babolat and Sony
make in this market is likely to be temporary.
Draw a graph to illustrate the outcome in the long run.
Show the excess capacity and markup in the long run.
Babolat's and Sony's economic profit from smart rackets is
likely to be temporary because
OA. other firms will enter the market and demand for
rackets made by Babolat and Sony will decrease
OB. the number of tennis players is likely to decrease
OC. other firms will enter the market and the supply of
smart rackets made by Babolat and Sony will
decrease
Selected:
none
6
Oll
&
7
O
*
8
220
200-
180-
160-
140-
120-
100-
80-
60-
40-
20-
0-
0
Price and cost (dollars per smart racket)
9
>>> Draw only the objects specified in the
question.
MC
MR
D
40 80 120 160 200 240 280 320 360 400 44
Quantity (thousands of smart rackets per year)
Delete Clear
0
ATC
Next
x
Canvas
support
d?
B
ES](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81f979f6-fdb0-4ccc-9054-519501293e39%2F6a3efd3e-90d5-4949-87fa-f7c8eeb401cc%2F8rht8rq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sony announces Smart Tennis Sensor
Tennis racket maker Babolat introduced its smart racket
Play Pure Drive in 2013. Smash and Shot Stats soon
followed. Now Sony is partnering with Wilson to make
Smart Tennis Sensor, a device that sits at the bottom of a
racket's handle and tracks every metric and statistic that a
tennis player or coach could need.
Source: Gizmag August 22, 2014
Explain why the economic profit that Babolat and Sony
make in this market is likely to be temporary.
Draw a graph to illustrate the outcome in the long run.
Show the excess capacity and markup in the long run.
Babolat's and Sony's economic profit from smart rackets is
likely to be temporary because
OA. other firms will enter the market and demand for
rackets made by Babolat and Sony will decrease
OB. the number of tennis players is likely to decrease
OC. other firms will enter the market and the supply of
smart rackets made by Babolat and Sony will
decrease
Selected:
none
6
Oll
&
7
O
*
8
220
200-
180-
160-
140-
120-
100-
80-
60-
40-
20-
0-
0
Price and cost (dollars per smart racket)
9
>>> Draw only the objects specified in the
question.
MC
MR
D
40 80 120 160 200 240 280 320 360 400 44
Quantity (thousands of smart rackets per year)
Delete Clear
0
ATC
Next
x
Canvas
support
d?
B
ES
![Sony announces Smart Tennis Sensor
Babolat's and Sony's economic profit from smart rackets is
likely to be temporary because
OA. other firms will enter the market and demand for
rackets made by Babolat and Sony will decrease
OB. the number of tennis players is likely to decrease
OC. other firms will enter the market and the supply of
smart rackets made by Babolat and Sony will
decrease
OD. eventually Babolat and Sony will find something
else to produce and will leave the market
The graph shows the demand curve, the MR curve, and the
cost curves for a producer of smart rackets in long-run
equilibrium.
Draw the point that shows the firm's profit-
output and price. Label it 1.
Draw the point that shows the output and average total cost
at the efficient scale. Label it 2.
Draw a horizontal arrow that shows the firm's excess
capacity. Label it Excess capacity.
Draw an arrow at the quantity produced to indicate the
markup. Label it markup.
6
O
Oll
&
7
*8
220
200-
180-
160-
140-
120-
100-
80-
60-
40-
20-
Price and cost (dollars per smart racket)
9
MC
MR
D
0-
0 40 80 120 160 200 240 280 320 360 400 44
Quantity (thousands of smart rackets per year)
>>> Draw only the objects specified in the
question.
✓
ATC
Next
Canvas.
support a
d?
ES](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81f979f6-fdb0-4ccc-9054-519501293e39%2F6a3efd3e-90d5-4949-87fa-f7c8eeb401cc%2F5jwxck_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sony announces Smart Tennis Sensor
Babolat's and Sony's economic profit from smart rackets is
likely to be temporary because
OA. other firms will enter the market and demand for
rackets made by Babolat and Sony will decrease
OB. the number of tennis players is likely to decrease
OC. other firms will enter the market and the supply of
smart rackets made by Babolat and Sony will
decrease
OD. eventually Babolat and Sony will find something
else to produce and will leave the market
The graph shows the demand curve, the MR curve, and the
cost curves for a producer of smart rackets in long-run
equilibrium.
Draw the point that shows the firm's profit-
output and price. Label it 1.
Draw the point that shows the output and average total cost
at the efficient scale. Label it 2.
Draw a horizontal arrow that shows the firm's excess
capacity. Label it Excess capacity.
Draw an arrow at the quantity produced to indicate the
markup. Label it markup.
6
O
Oll
&
7
*8
220
200-
180-
160-
140-
120-
100-
80-
60-
40-
20-
Price and cost (dollars per smart racket)
9
MC
MR
D
0-
0 40 80 120 160 200 240 280 320 360 400 44
Quantity (thousands of smart rackets per year)
>>> Draw only the objects specified in the
question.
✓
ATC
Next
Canvas.
support a
d?
ES
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