An auto manufacturer can manufacture compact cars for an incremental cost of $5,000 apiece. She faces a logit price-response function for sales in the next month, with parameters C = 40,000, b = 0.0005, and p = $12,000. What price will maxi- mize the total contribution? How many cars will she sell during the month? %3D

An auto manufacturer can manufacture compact cars for an incremental cost of $5,000 apiece. She faces a logit price-response function for sales in the next month, with parameters C = 40,000, b = 0.0005, and p = $12,000. What price will maxi- mize the total contribution? How many cars will she sell during the month? %3D

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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