ABC Manufacturing has found that when it charges $10 for its product, its total revenue is $5 million, whereas when it charges $20, its total revenue is $8 million. Its total cost function is: Total Cost = 3,000,000+.5Q² where Q is in millions and Total Cost is in millions. Assume that price is the only thing to change between the two different revenue points above. Is there enough information to determine whether this firm operates in a competitive market or has market power? a. yes, it operates in a competitive market b. yes, it has market power c. no there is not enough information

ABC Manufacturing has found that when it charges $10 for its product, its total revenue is $5 million, whereas when it charges $20, its total revenue is $8 million. Its total cost function is: Total Cost = 3,000,000+.5Q² where Q is in millions and Total Cost is in millions. Assume that price is the only thing to change between the two different revenue points above. Is there enough information to determine whether this firm operates in a competitive market or has market power? a. yes, it operates in a competitive market b. yes, it has market power c. no there is not enough information

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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