Question
You are a divisional manager at Kia. Your marketing department estimates that the semiannual demand for the top-end model of the Telluride to be: Q
You are a divisional manager at Kia. Your marketing department estimates that the semiannual demand for the top-end model of the Telluride to be:
Q = 150,000 - 1.5P or P = 100,000 - (2/3)*Q
- What price should you charge in order to maximize total revenue from sales?
- Is this revenue-maximizing price likely to maximize profit? Use marginal analysis to explain your answer to your senior VP.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
