Question: I don't know how to do it P-5) (25 pts) LASTIK a tire manufacturing company designed and manufactured a new type of run-at tire RUN
I don't know how to do it

P-5) (25 pts) \"LASTIK\" a tire manufacturing company designed and manufactured a new type of run-at tire \"RUN\" for automobiles. \"RUN\" tires are sold through a retailer chain \"CAR\". \"CAR\" retailer chain has forecasted that demand for the \"RUN\" tires will depend on the nal retail price p according to the demand curve. Demand D = 300 000 - 1000p The production cost for a \"RUN\" tire is TL 400. a. If you are an industrial engineer in LASTIK company (tire manufacturing company) and in charge of determining the wholesale price for the \"RUN\" tires, what price would you charge for each of \"RUN\" tires? (5 P\") b. At this wholesale price, what retail price should \"CAR\" company set? (5 pts) 0. What are the prots for \"LASTHC' company and \"CAR\" company at equilibrium? (5 pts) d. If \"LASTIK\" company decides to discount the wholesale price by $40, how much of a discount should \"CAR\" company offer to customers if it wants to maximize its own prots? (5 pts) e. What fraction of the discount offered by \"LASTHC' company does \"CAR\" company pass along to the customer? (5 pts)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
