Problem
1. Using the equation linking the price of a car to markup and marginal cost, if the markup is 60 percent and marginal cost is $20,000, what is the price? Show with this example that a firm facing a more elastic demand curve will set a lower price
2. Is a car dealership more valuable in a small city with little competition or in a big city with more competition but also more potential buyers?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.