Autocorp Faces the Following Demand Function for Its Automobiles

question 10

Essay

Autocorp faces the following demand function for its automobiles:
P = 55,000 - 200 Q
Its MC is $9,000. What will its price be if it decides to sell the automobiles by itself and what will the price be if it sells though SUVmart, an independent distributor. What is the consequence of this exclusive dealing on prices?

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