Currently, your local sports-car dealer sells 200 cars per year at a price of $150,000. The dealers
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Currently, your local sports-car dealer sells 200 cars per year at a price of $150,000. The dealer’s cost of purchasing a car is $60,000. Assume that during a car’s lifetime, the dealer makes $25,000 in profits from repair. The annual demand for cars follows a linear demand curve with an elasticity of 4. What price should the dealer charge to maximize the profit from sales and repairs?
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To maximize profit the dealer needs to determine the price that will generate the highest total reve...View the full answer
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Related Book For 
Microsoft Excel Data Analysis And Business Modeling
ISBN: 9780137613663
7th Edition
Authors: Wayne Winston
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