"this year is expected to be a great one for selling walking shoes in georgia. at very low prices, only the most efficient shoemakers are able to sell. there are two shoe producers that operate with the most cost-effective equipment and skilled personnel, each of which can put 1000 shoes in the market at $10.00. at a higher price, eight more shoemakers will enter the market. each producer makes 1200 shoes at $25.00 per pair. if the price goes to $40.00 per pair, the existing firms increase production to 1400 each, plus four small shops open, each of which produces 500 shoes."