question archive Motorcycles USA is a company that manufactures and sells motorcycles in North America
Motorcycles USA is a company that manufactures and sells motorcycles in North America
Subject:EconomicsPrice: Bought3
Motorcycles USA is a company that manufactures and sells motorcycles in North America. It has the following demand function for its motorcycles: P = 30,000 - 100Q. Motorcycles USA has a marginal cost (MC) that is constant and equal to $4,000.
Consider that when Motorcycles USA contracts with MC Dealership, LLC, it takes into account that MC Dealership, LLC faces the same demand curve. Assume that (MC) is constant and equal to $4,000. What is the impact of distributing the motorcycles through MC Dealership, LLC on the price of the motorcycles? Show your complete solution and provide a brief explanation for your answer.
