What would the membership price be

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Kia Motors manufactures cars that are sold through dealers. The (daily) demand for Kia cars in a certain market is given by q(p) = -3p + 122 and let the (constant) marginal cost of manufacturing a car be: MC = 40 Suppose that Kia charges a fixed fee for the dealer to be able to buy cars in order to sell in its dealership (call it a membership fee), and charges a price for every car it sells the dealer once the membership is paid

What would the membership price be?
Instead suppose the market for dealers is perfectly competitive, and Kia charges a wholesale?
What will be the quantity the dealer will demand ?
What would be the price Kia will set?
What is the equilibrium quantity of Kia cars sold?
What are the profits of the dealers?
What are the profits of Kia?

Reference no: EM133083013

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