a. How are Callaway and Nike attempting to maintain economic profit?
b. Draw a graph to illustrate the cost curves and revenue curves of Callaway or Nike in the market for golf clubs for women.
c. Show on your graph (in b) the short-run economic profit.
One of the hottest areas of innovation is in clubs for women, who now make up nearly a quarter of the 24 million golfers in the United States. Callaway and Nike, two of the leading golf-equipment manufacturers, recently released new clubs designed for women.