In the short run, what is the quantity that La Bella Pizza produces, the price
it charges, its markup, and its excess capacity?
In the long run, how will the number of pizza producers change? What are
the excess capacity and the deadweight loss created? Explain your answer.
Use the following information to work Problems 5 and 6.
A new swing for female golfers
Callaway and Nike, two of the leading golf-equipment manufacturers, recently
released new clubs designed for women. They are the hottest innovation in golf.
Source: Time, April 21, 2008