3.5 As a manager at a firm like Samsung, you are presented with the figure showing the retail demand curve (D) for your most recent smartphone. The figure also shows the marginal cost of production (MCP) and marginal cost of distribution (MCD) for these phones. If the retail distributors are competitive, what is your profit-maximizing wholesale price and quantity? What is the retail price of a phone?

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Price and cost (dollars per smartphone) $700 $600 $500 $400 $300 $200 $100 MCP MCD D 0 20 40 60 80 100 120 140 Quantity (millions of smartphones per month)