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the marginal cost of sales is zero for the dealerships. Thus, Penskes margin: cost of retailing is just the wholesale price, w, set by Tesla.
the marginal cost of sales is zero for the dealerships. Thus, Penskes margin: cost of retailing is just the wholesale price, w, set by Tesla. The demand for th Model S is the same as above, as is Teslas marginal cost of production. How many vehicles are sold now? Find the corresponding wholesale and retail price as well as the resulting profit (gross of fixed costs) to Tesla
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