Auto repair facility in a remote area of the nevada desert

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Reference no: EM13886537

Jimbob’s Garage is the only auto repair facility in a remote area of the Nevada desert. The proprietor, Jimbob, does not post his prices for services. Knowing his customers are travelers who are desperate to get their vehicles repaired, he sizes each one up for their apparent ability to pay, and charges them accordingly. Suppose annual demand for his repair services is Qd = 1000 - .5*P, and his marginal cost per repair job is $80. What is the range of prices he will charge his customers? How many cars does he repair per year? What is his profit if his fixed costs are $12,000/yr?

Reference no: EM13886537

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