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Imagine you are a manager at the DaimlerChrysler. Daimler Chrysler has lost money on 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 8.0P, what price should you charge in order to maximize revenues from sales of the Smart Car?

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M9311693

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