Put yourself in the yacht dealers shoes. You currently are considering other order quantities in addition to

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Put yourself in the yacht dealer’s shoes. You currently are considering other order quantities in addition to 50 and 100. Find the optimal order quantity, that is, the exact quantity that maximizes your expected profit. (From the two demand curves, find the expected price equation, that is, the expected sale price for any given quantity of yachts. Given this expected-price equation, apply the MR = MC rule to maximize expected profit.)

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Managerial economics

ISBN: 978-1118041581

7th edition

Authors: william f. samuelson stephen g. marks

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