a. General Motors(GM) produces light trucks in several Michigan factories where it's annual fixed cost are $180 million, and it's marginal cost per truck is approximately $20,000. Regional demand for the trucks is given by: P=30,000-0.1Q, where P denotes price in dollars and Q denotes annual sales of trucks. Find GMs profit maximizing output level and price. Find the annual profit generated by light trucks. b. GM is getting ready to export trucks to several markets in South America. Based on several marketing surveys, GM has found the elasticity of demand in these foreign markets to be Ep= -9 for a wide range of prices between $20,000 and $30,000. The additional cost of shipping (including paying some import fees) is about $800 per truck. One manager argues that the foreign price should be set at $800 above the domestic price(in part a) to cover the transportation cost. Do you agree that this is the optimal price for foreign sales? Justify your answer. C. GM also produces an economy("no frills") version of its light truck at a marginal cost of $12,000 per vehicle. However at the price set by GM, $20,000 per truck customer demand had been very disappointing. GM has recently discounted production of this model, but still find self with an inventory of 18000 unsold trucks. The best estimate of demand for the remaining trucks is P= 30,000- Q. One manager recommends keeping the price at $20,000, another favors cutting the price to sell the entire inventory. What price (one of these or some other prices) should GM set and how many trucks should it sell? Justify your