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Answer to Question #70071 in Microeconomics for monika

Question #70071
1) What is the shape of marginal cost curve for Netflix in Australia? 2) The latest electric car is expected to be released in Australia shortly. What impact might this have on the market for battery powered bicycles?
1
Expert's answer
2017-09-13T13:43:07-0400
1) Marginal cost curve (MC) has a J-shape because MC declines over lower production quantities
2) If the latest electric car is expected to be released in Australia shortly, then as battery powered bicycles can be considered as substitutes to electric cars, so the price for battery powered bicycles may decrease.

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