Determine the price to maximize revenues

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Reference no: EM1367122

Suppose you are a manager at the DaimlerChrysler. Daimler-Chrysler has lost fund on the Smart car since 1st model rolled off the assembly line in 1998. By bringing its little car into the huge U.S. market, the firm hopes to reverse its fortunes. Former race car driver Roger Penske has signed on to develop a network of up to 50 Smart dealerships across the U.S. Penske says the car is not just smart, it is also safe. If your marketing department estimates that the annual demand for the Smart Car is Q = 200,000 â?" 8.0P, what price should you charge in order to maximize revenues from sales of the Smart Car?

Reference no: EM1367122

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