Assume, again, that smartphone manufacturing is a competitive industry and Apple, as well as other firms, are producing smartphones, but currently earning economic losses.
(a) How does the price of smartphones compare to Apple's average total cost, average variable cost, and marginal cost of making smartphones?
(c) Assuming there is no change in either demand or firms' cost curves, explain what will happen in the long run to the price of smartphones, marginal cost, average total cost, the quantity supplied by Apple, and the total quantity supplied to the market?