Problem
A company produces socks in a variety of fashionable colors with different materials. There are different sock companies in this market, but this company is earning a profit selling glow-in-the-dark socks personalized with the customer's initials embroidered in them.
I. What is this market structure and why?
II. Use an appropriate diagram that demonstrates them earning profits.
III. Why would an economist warn that their profits will not last long (don't forget to use a diagram)?
IV. Why would the company argue that they can regain profits (don't forget to use a diagram)?
V. Explain why in terms of the economy there are efficiency issues in this market