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Carolina Torres is riding a new business. Try opening a new store in the center. Studies on the demand for luxury accessories for women at
Carolina Torres is riding a new business. Try opening a new store in the center. Studies on the demand for luxury accessories for women at the center of Seville shows that the monthly demand for this year can be approximated by the following function: Q= 50+100P+30P2 Besides the fixed and variable costs per item are 1500 Euros and 70 respectively, calculate: - The price level that maximizes the profit of the firm. In view of the results, do you think the store can be competitive in this market? Another possible option for Carolina is to wait until next year. For next year the demand function is: Q = 1000-20P. - What would be the price that maximizes the profit next year? - Given that the initial investment to put the store is 600 Euros which is the average price per item that allows a return rate of 15% on the amount of investment considering they are selling high quality image products? In addition, to ensure that the business is profitable, Carolina is considering collaborating with one intermediary with some stores in other locations. These stores would apply an extra margin of 20% products which would increase the price at which the customer ultimately buy the product. If the maximum price that customers are willing to pay is 80 Euros per item. How can you advice intermediaries apply the margin, on the price they buy or on the price they sell
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