Determine the price to maximize revenues

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

Questions Cloud

Decision to investigate a variance : The decision to investigate a variance requires a comparison of expected benefits with expected costs. Suppose an unfavorable variance of $1,000 is observed.

Supply-demand-equilibrium quantity and price : Find out the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in this market. Also determine the full economic price paid by consumers.

Explain ping sweeps and port scans : Your boss has just heard about some nefarious computer activities known as ping sweeps and port scans. He wishesto know more about them and what the impact of these activities might be on company.

Estimating consumer surplus : The demand curve for the product X is given by Qdx = 460 - 4Px. How much consumer surplus do consumers receive when Px = $35?

Determine the price to maximize revenues : 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.

Value chain activity in a hospital-health care organization : What would be a value chain activity in a hospital or health care organization? Where would you requireto make sure connection activities for your value chain to be successful? Describe.

Determining optimal level of pollution : Suppose an economy of two firms and two consumers. The two firms pollute. Firm 1 has a marginal savings function of MS1(e) = 5-e where e is the quantity of emissions from the firm.

Describe how to prevent race condition from occurring : Function and wife calls deposit (). Explain how a race condition is possible and what might be done to prevent race condition from occurring.

Market structure of airport : Describe supply and demand as it relates to airport market structure(oligopoly). Describe customers options - given the customers are price sensitive

User Account

All Pages