ssume Uncle Sam's Baked Goods could enter, but would face much higher costs than its entrenched competitors. In fact, Uncle Sam's average total cost from producing 25 bags of cookies would equal $18/bag, due to the large amount of advertising that would be required to compete with the firms already in the industry. Each of the four firms (upon Entry of Uncle Sam's) would split the market and selling an average of 25 bags of cookies each month at $12/bag. 11. Would it make sense for Uncle Sam's Baked Goods to enter and compete in this market? Why or why not (Explain in economic terms)? 3