Acme Anvils has a newly patented anvil that is ready for the market. While there are plenty of other anvil producers, Acme's anvils are unique. Past models have been featured in a number of animated short films over the years. The weekly demand and cost information for Acme Anvils are described in the graph below.

a. To maximize its profits, Acme should produce (Click to select) 75 anvils 100 anvils 50 anvils 125 anvils and charge a price of (Click to select) $400 $200 $500 $700 $100 $600 per anvil.

b. At its profit-maximizing level, Acme's weekly profits are (Click to select) $0 $30,000 $10,000 $40,000 $20,000 per week.

c. Even though Acme has a patent on its particular type of anvil, there are many other potential anvil makers out there. Which of the following is most likely to happen in the long run?

multiple choice 4

• Other firms will copy Acme's anvils exactly and hope they do not get caught for violating Acme's patent.
• Other firms will look for other innovations to try to capture some of Acme's profits.
• Other firms will simply take Acme's price as being the market price and sell as many anvils as they can at that price.
• Other firms will leave the market because of Acme's patent.