European airplane manufacturer is currently charging a price of $10,000,000 and is selling 1,000 units of output per quarter. If the firm increases price above $10,000,000, then quantity demanded will decline by 1 unit for every $100,000 increase in price. If the firm reduces price below $10,000,000, then the quantity demanded will increase by 2 units for every $100,000 decrease in price. If the airplane producer's marginal cost curve is horizontal, within what range could marginal cost vary without giving the firm an incentive to change price or quantity?

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The Answer of European airplane manufacturer is currently charging a price of $10,000,000 and is selling 1,000 units of output per quarter. If the firm increases price above $10,000,000, then quantity demanded will decline by 1 unit for every $100,000 increase in price. If the firm reduces price below $10,000,000, then the quantity demanded will increase by 2 units for every $100,000 decrease in price. If the airplane producer's marginal cost curve is horizontal, within what range could marginal cost vary without giving the firm an incentive to change price or quantity?

European Airplane Manufacturer Is Currently Charging a Price of $10,000,000