St. Johns University ACC 623MIDTERM EXAM TEST II ( with correct solutions )

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BEPMC 311 (MANAGERIAL ECONOMICS) MID-TERM EXAMINATION FIRST SEMESTER, AY 2020-2021 II. PROBLEM The manager of a sole distributorship for a famous brand of automobiles was discussing with the assi... stant manager the planned introduction by mid-year of a new model, the XP-60. It was decided earlier that the price be set at P400,000, at which level the total number of units sold was estimated at 500 units annually. The assistant manager has suggested that the price should be set at a somewhat lower level, say, at P360,000 in order to attract a major segment of the non-targeted market. At this lower price, 1,000 units are expected to be sold. 1. Formulate the firm’s linear demand equation for the product given the estimates and projections made [Show More]

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