Determine quantity and price

Reference no: EM1369902

1. BMW has MC=$20,000 and FC=$10billion. Demand for markets in Europe(e) and US(u) are Qe=4,000,000-100Pe and Qu=1,000,000-20Pu. Prices and Costs are in thousands. BMW can restrict US sales to authorized BMW dealers only.

a. What should be the quantity and price in each market.
b. What should be the total profit.
c. If they charge the same price in each market, what should be the quantity sold in each market, equilibrium price, total profit?

Reference no: EM1369902

Questions Cloud

Risk management question : Prepare a paper in which you define the following corporate risk terms and describe their relevance to your organization

Computation of of long run equilibrium price : Suppose that the position of a nation's aggregate demand curve has not been changed, but long-run equilibrium price level has declined.

Business resolve an hr issue : Strategic Result In this section, share how this technology recommendation will create a strategic approach to solving the problem chosen.

Determine seperate total of positive and negative numbers : Read set of 40 positive and negative numbers entered from keyboard and determine seperate total of positive and negative numbers. How to show modular design of above statement

Determine quantity and price : BMW has MC=$20,000 and FC=$10billion. Demand for markets in Europe and US are Qe=4,000,000-100Pe and Qu=1,000,000-20Pu. Prices and Costs are given in thousands.

Determining role of cost manager : What does the cost manager do? What information does the cost manager get and how does he use it? What decision does the cot manager make about production and how does it affect shareholders?

Determining nominal output problem : Suppose that nominal output rises from $12.5 trillion in 2005 to $13 trillion in 2006. Assume also that the GDP deflator rises from 100 to 105.

Draw the graph and label to identify the market structure : Assume your boss purchase out every single pizza store in the US. Your cost-demand conditions are as follows: profit maximizing quantity - 60 pizzas; price - 20$ per piece;

Prepare a training plan to increase effectiveness of groups : Prepare a training plan to increase the effectiveness of groups and teams through a discussion of the challenges and benefits of group and team communication, collaboration, and conflict management.

User Account

All Pages