Use the following information to work Problems 5 and 6.
A new swing for female golfers Callaway and Nike, two of the leading golf-equipment manufacturers, recently released new clubs designed for women. They are the hottest innovation in golf.
Source: Time, April 21, 2008 Explain why the economic profit that Callaway and Nike make in this market is likely to be temporary. Draw a graph to illustrate their excess capacity in the long run.