Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sony announces Smart Tennis Sensor Tennis racket maker Babolat introduced its smart racket Play Pure Drive in 2013. Smash and Shot Stats soon followed. Now

Sony announces Smart Tennis Sensor Tennis racket maker Babolat introduced its smart racket Play Pure Drive in 2013. Smash and Shot Stats soon followed. Now Sony is partnering with Wilson to make Smart Tennis Sensor, a device that sits at the bottom of a racket's handle and tracks every metric and statistic that a tennis player or coach could need. Source: Gizmag August 22, 2014 Explain why the economic profit that Babolat and Sony make in this market is likely to be temporary. Draw a graph to illustrate the outcome in the long run. Show the excess capacity and markup in the long run. Question content area bottom left Part 1 Babolat's and Sony's economic profit from smart rackets is likely to be temporary because ______. A. the number of tennis players is likely to decrease B. other firms will enter the market and the supply of smart rackets made by Babolat and Sony will decrease C. eventually Babolat and Sony will find something else to produce and will leave the market

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business A Changing World

Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell

10th edition

1259179397, 978-1259179396

More Books

Students also viewed these Economics questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago