Demand Function, Marginal Cost

Dec 2nd, 2014
Business Finance
Price: $5 USD

Question description

Great Cars, Inc. faces the following demand function for its automobiles: P=55,000 - 200Q Its marginal cost (MC) is $9,000. What will its price be if it decides to sell the automobiles by itself and what will the price be if it sells it through DistiCorp, an independent distributor. Note that when Great Cars, Inc. contracts with DistiCorp, it has to take into account that DistiCorp faces the same demand curve. What is the consequence of this exclusive dealing on prices.

Tutor Answer

(Top Tutor) johnalia
School: University of Maryland

Studypool has helped 1,244,100 students

Review from student
" Top quality work from this guy! I'll be back! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors