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Fischer Skis has been producing high quality skis for a long time with no change to any market conditions. Answer the following question(s) about Fischer Skis in relation to the ski industry assuming that the ski industry is a competitive constant cost industry.
a. Given that all firms have had plenty of time to adjust K and L levels, graph the current state of Fischer Skis in relation to the Ski Industry as a whole.
Be sure to include (i) the ski industry’s equilibrium price and quantity; and (ii) Fischer Skis’ equilibrium price and quantity; and (iii) all relevant firm and industry curves and labels as seen in the lecture.
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