A car wash reduced the price of a basic wash as a promotion and test of...
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A car wash reduced the price of a basic wash as a promotion and test of the market. With the price at $11 the average monthly sales has been 30000. When the price dropped to $8, the average monthly sales rose to 35000. Assume that monthly sales is linearly related to the price. What car wash price would maximize revenue? $ A car wash reduced the price of a basic wash as a promotion and test of the market. With the price at $11 the average monthly sales has been 30000. When the price dropped to $8, the average monthly sales rose to 35000. Assume that monthly sales is linearly related to the price. What car wash price would maximize revenue? $
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We can use the formula Revenue Price x Quantity To find the revenue for each price level and then de... View the full answer
Related Book For
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
Posted Date:
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