The inverse demand for Harley Davidson motorcycles is given by: P = 40,000-10Q where Pis the price in dollars, and Q measure the number of units sold each month. Harley

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The inverse demand for Harley Davidson
motorcycles is given by:
P = 40,000-1OQ
where Pis the price in dollars, and Q measures
the number of units sold each month. Harley
Davidson is currently producing motorcycles at a
constant marginal and average cost of $16,000.
Assume Harley Davidson is a monopoly.
Heavy tariffs on imported steel drive up Harley's
marginal and average cost by $2,000. What is
the new profit-maximizing quantity?
Transcribed Image Text:The inverse demand for Harley Davidson motorcycles is given by: P = 40,000-1OQ where Pis the price in dollars, and Q measures the number of units sold each month. Harley Davidson is currently producing motorcycles at a constant marginal and average cost of $16,000. Assume Harley Davidson is a monopoly. Heavy tariffs on imported steel drive up Harley's marginal and average cost by $2,000. What is the new profit-maximizing quantity?
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