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He ose that BMW can produce any quantity of cars at a constant marginal cost equal to $20,000 and a fixed cost of $10 billion. You are asked to advise the CEO as to what prices and quantities

He ose that BMW can produce any quantity of cars at a constant marginal cost equal to $20,000 and a fixed cost of $10 billion. You are asked to advise the CEO as to what prices and quantities BMW should set for sal De and in the United States. The demand for BMWs in each market is given by QE = 4,000,000 - 100PE Qu= 1,300,000 - 20PU the subscript E denotes Europe, the subscript U denotes the United States. Assume that BMW can restrict U.S. sales to authorized BMW dealers only nat quantity of BMWs should the firm sell in each market, and what should the price be in each market? What should the total profit be? (round dollar amounts to the nearest penny and quantities to the nearest inte Europe, the equilibrium quantity is cars at an equilibrium price of $ while in the United States, the equilibrium quantity is cars at an equilibrium price of W makes a total profit of S our answer in the edit fields and then click Check Answer Dear All Five Check Eining

Apr 12 2021 View more View Less

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