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Motorcycles USA is a company that manufactures and distributes motorcycles in North America. It has the following demand function for its motorcycles: P = 40,000
Motorcycles USA is a company that manufactures and distributes motorcycles in North America. It has the following demand function for its motorcycles:
P = 40,000 - 100Q
Motorcycles USA has a marginal cost (MC) that is constantand equal to $6,000.
- What will Motorcycles USA's price be if it decides to distribute the motorcycles by itself?(10 points)
- What will the price be if it sells them through MC Dealership, LLC an independent distributor?(10 points)
- Should Motorcycles USA distribute the motorcycles by itself or through MC Dealership, LLC? What factors would you consider when making this decision?(10 points)
Be sure to explain your calculations
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