Listen to this podcast and explain the story of the Monoprice company about monitors, using graphs you have learned this week.

In particular, draw the following graphs and answer the questions:

Step 1: Graph 1: Draw the cost conditions for Apple before entering of Monoprice company in the market of monitors and show its profit.

Step 2: Graph 2: Draw the cost conditions for Monoprice and show its profit when they started the production of monitors for the first time.

Step 3: In graph 1, show what did change for Apple when Monoprice entered the market?

Step 4: Graph 3: Draw cost conditions for Samsung, and show its profit when they started the production of monitors for the first time.

Step 5: In Graph 1 and Graph 2, show what did change for Apple and Monoprice when Samsung entered the market.

What do you expect to happen to the number of firms producing in this market 10 years from now?

For how long do firms enter to this market?

Does Apple currently face downward sloping demand curve or horizontal demand curve? How about 10 years from now?

Is the market for monitor currently in the short run equilibrium or long run? Why?