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An auto manufacturer can manufacture compact cars for an incremental cost of $5,000 apiece. She faces a logit price-response function for sales in the next
An auto manufacturer can manufacture compact cars for an incremental cost of $5,000 apiece. She faces a logit price-response function for sales in the next month, with parameters C=40,000, b=0.0005, and p = $12,000. What price will maximize the total contribution? How many cars will she sell during the month?
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