HYT is a retailer selling a new cellphone with a customer demand given by D(p) = 1800 - 25*p, where p is the selling price. It now has a wholesale price contract with its supplier POY, with a wholesale price w = 30. The cellphone has a manufacturing cost of c = 20 (All quantities are measured in hundreds of HKD).
a) What is the optimal selling price for the entire supply chain, i.e., maximizing the total profit of HYT and POY?
a) What is the optimal selling price for the entire supply chain, i.e., maximizing the total profit of HYT and POY?