a. How was Apple attempting to maintain economic profit?

b. Draw a graph to illustrate the cost curves and revenue curves of Apple in the market for smart watches.

c. Show on your graph in part

(b) Apple’s short run economic profit.

In 2015, Apple unveiled the Apple Watch, its first new product line since the iPad and the death of its co-founder Steve Jobs. The smartwatch runs apps, acts as a health and fitness tracker, and communicates with the iPhone.