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(i) Imagine the market for vitamin A. Assume that firms in this market are currently making normal profits, and they have a positively sloped marginal
(i) Imagine the market for vitamin A. Assume that firms in this market are currently making normal profits, and they have a positively sloped marginal cost (MC) curve. Let's consider the impact in the short run of new research that finds vitamin A significantly slows down age-related macular degeneration (AMD), the leading cause of blindness in the developed world. The impact of this on the market for vitamin A will be Answer, which will lead to Answer. This will result in existing firms earning Answer in the short run
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