The following table summarizes information about U.S. pancake syrup products:

Average Consumer Willingness to Pay Price Average Costs Brand (Cents/Ounce) (Cents/Ounce) (Cents/Ounce)

Hungry Jack 20 15 14 Aunt Jemima 21 19 17 Log Cabin 28 24 20 Mrs. Buttersworth 21 18 14 Assume the following apply to the time period relevant for the question:

• Demand remains stable.

• No new firms enter and no new products are introduced.

• No changes in advertising are made.

• Firms have constant returns to scale and input prices are constant.

(a) Given current prices, which brand do you expect to gain share in the next few months?

(b) Which brand can earn the highest profits in the longer run (assuming prices can be changed)?