PLEASE SOLVE AND SHOW WORK FOR QUESTION 11

PLEASE SOLVE AND SHOW WORK FOR QUESTION 11

PLEASE SOLVE AND SHOW WORK FOR QUESTION 11

For Questions 8-11, use the following information: The Orange company has introduced a new smartphone called the J-Phone. The J-Phone is sold through Good Buy, a major electronics retailer. Good Buy has estimated that demand for the J-Phone will depend on the final retail price,p. according to the demand curve: d=2,500,000-3,000p The production cost for Orange is $150 per J-Pod. Note that this supply chain is uncoordinated. Question 8: What wholesale price should Orange charge for the J-Pod? Between $350 and $400 Between $300 and $330 Between $330 and $350 More than $400 less than $300 Question 9 10 pts At this wholesale price, what retail price should Good Buy set? Between $500 and $520 Between $520 and $550 Between $550 and $580 Less than $500 More than $580 Question 11 10 pts What is the profit for Good Buy at equilibrium (i.e. when the players set the wholesale and retail prices from Questions 8 and 9)? Between $120,000 and $140,000 Between $140,000 and $160,000 Less than $100,000 Between $100,000 and $120,000 More than $160,000