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Originally Posted by MPower
The point that I was making, and one which still holds true, is that maximum profit will be found at a point in between the high price/low quantity and low price/high quantity points. While the two points might result in the same profit, those points will not represent a maximum profit.
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If you want to talk theory then the point of maximum profit can be at any point on the line based upon supply and demand.
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Clearly, we do not know the specific numbers that BMW would use to calculate the price of the 135i. That still does not mean that we cant be as accurate as we can be.
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Not knowing the actual numbers makes it impossible to determine where the point of maximum profit will occur. It's just a guess by this forum and although BMW has access to better numbers their price is just a more educated guess (although it's the only one that counts). And unless you have access to parallel universes good luck proving otherwise.
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Diminishing returns applies to anything and everything; that is what makes it the law of diminishing returns.
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You're joking. Right?