Question
(Volume-Based Discount #2) The Kiwi company (supplier) has introduced a new device called jPad. jPad is sold through Good Buy (retailer). Kiwi produces one jPad
(Volume-Based Discount #2) The Kiwi company (supplier) has introduced a new device called jPad. jPad is sold through Good Buy (retailer). Kiwi produces one jPad at $200 and sells it to Good Buy at $400. Good Buy has estimated that demand for the jPad depends on the retail price (p) according to the demand function: D(p) = 2000 - 2p. With calculus/Excel used, optimal retailer's prices were calculated. (Independent pricing) The optimal retailer's price is $700. (Coordinated pricing) The optimal retailer's price is $600. In the volume-based discount, the supplier charges a transfer price of $ ___ for orders of D(p*) units or more per year.
A. | 375 | |
B. | 374 | |
C. | 378 | |
D. | 371 | |
E. | 376 | |
F. | 373 | |
G. | 377 | |
H. | 372 |
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