Wired is a small manufacturer of USB-C charging cables, operating in a perfectly competitive market.  Due to the large number of charging cable producers and the homogeneous nature of charging cables, Wired is a price taker.  The current market price for USB-C charging cables is $8 per unit, and Wired's cost structure is described by the equations: FC = $5000 per month, VC = 0.04q2 + 4q, and MC = 0.08q + 4, where q is the firm's quantity of USB-C charging cables per month.  What changes (if any) would one expect in the long run in the market for USB-C charging cables?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 3E
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Wired is a small manufacturer of USB-C charging cables, operating in a perfectly competitive market.  Due to the large number of charging cable producers and the homogeneous nature of charging cables, Wired is a price taker.  The current market price for USB-C charging cables is $8 per unit, and Wired's cost structure is described by the equations: FC = $5000 per month, VC = 0.04q2 + 4q, and MC = 0.08q + 4, where q is the firm's quantity of USB-C charging cables per month. 

What changes (if any) would one expect in the long run in the market for USB-C charging cables?

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