Table 14-6 There Are Two Custom Carport Manufacturers in Louisiana, Under Cover

question 186

Multiple Choice

Table 14-6

There are two custom carport manufacturers in Louisiana, Under Cover (U) and Made for Shade (M) . Under Cover has been in the market for a long time and must now compete with newcomer, Made for Shade. Suppose that Under Cover believes that Made for Shade will match any price it sets. Use Table 14-6 to answer the following question and assume throughout that Under Cover believes that Made for Shade will match any price it sets.
-Refer to Table 14-6.What price will Under Cover charge and what profit does Under Cover expect to make?

• A)Price = $12,000; expected profit = $14 million
• B)Price = $12,000; expected profit = $8 million
• C)Price = $15,000; expected profit = $10 million
• D)Price = $18,000; expected profit = $6 million

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