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Posted on Aug 28, 2024

Both Watchdog Inc. and Device Corp. incur a cost of $ 2 0 0 to manufacture a single unit of a smart home pet monitor.

Both Watchdog Inc. and Device Corp. incur a cost of $ $200$ to manufacture a single unit of a smart home pet monitor. However, Watchdog Inc. charges a higher price than Device Corp. does, but it still sells a higher number of monitors. What does this imply?

Watchdog and Device Corp. have achieved a competitive parity.

Device Corp. has a competitive advantage over Watchdog Inc.

Watchdog creates more economic value than Device Corp. does.

Device Corp. is not charging enough for its product.

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