Suppose the book-printing industry is competitive and begins in a long-run equilibrium. a) Draw a diagram describing the typical firm in the industry.

b) Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. What happens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patent prevents other firms from using the new technology?

c) What happens in the long run when the patent expires and other firms are free to use the technology?