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Business, 10.07.2019 00:20 okitsfrizz2370

Woz enterprises specializes in electrical components. the market for one particular component is perfectly competitive and in long run equilibrium. the marginal cost is constant at 30. woz can develop a much cheaper process for producing this component, lowering its marginal cost to 10. the r& d cost of developing the new process would be f and woz would be able to obtain a patent for it and become a monopoly supplier of this component. demand for the product over the relevant period is given by pequals50minus2q. suppose the cost of the investment is fequals140 and that the government waits until woz works out the new process and then changes patent rules, requiring woz to charge a price no greater than $12. does woz stay in business?

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