Women's Golf Clubs

A quarter of golfers today are women and the number keeps growing. And golf club manufacturers are paying attention and developing a market for women's clubs. Callaway and fourteen other firms are players in this market.

Source: Thoughtco.com, February 20, 2017

1.a.How are golf club manufacturers attempting to maintain economic profit?

b.Draw a graph to illustrate the cost curves and revenue curves of Callaway in the market for golf clubs for women.

c.Show on your graph in part (b) the short-run economic profit.

2.a.Explain why the economic profit that Callaway makes on golf clubs for women is likely to be temporary.

b. Draw a graph to illustrate the cost curves and revenue curves of Callaway in the market for golf clubs for women in the long run. Mark the firm's excess capacity.