7) Motorcycles USA is a company that manufactures and sells motorcycles in North America. It has the following demand function for its motorcycles:
P = 30,000 – 100Q
Motorcycles USA has a marginal cost (MC) that is constant and equal to $4,000.
What will Motorcycles USA’s price be if it decides to sell the motorcycles by itself? What will the price be if it sells them though MC Dealership, LLC an independent distributor? (10 points)
Consider that when Motorcycles USA contracts with MC Dealership, LLC, it takes into account that MC Dealership, LLC faces the same demand curve. Assume that (MC) is constant and equal to $4,000.
What is the impact of distributing the motorcycles through MC Dealership, LLC on the price of the motorcycles? (10 points)
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4) Assume you are the owner of a concert hall with 6,000 seats. The demand function for seat tickets is Q = 10,000 – 200P where Q is the quantity demanded and P is the price for a seat ticket. You are charging $30 per ticket and selling tickets to 4,000 consumers. Further assume that you incurred only fixed costs. Is charging $30 the optimal pricing policy? (5 points) What other pricing policy might you use to increase your profits? (10 points) Could you increase profits through price discrimination? If so, what type of price discrimination should you use? (5 points)
Answers
Status NEW
Posted 22 Jun 2017 01:06 AM
My Price 6.00
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