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This led me to determine that the market demand forecast would be between $50K and $100K per unit considering all six companies. Upon selecting the total number of units seven and the other companies populated with lesser units I determined that I would receive the larger market share overall.
My production costs per unit is $25K x 7 units = $175K, the total number of units sold 7 multiplied by the Market demand price $50K = $350K. Based on the $350K - $175K = $175K profit over my operating costs. In discussing the relationship between demand and pricing to the units supplied provides a direct relationship to the cost of supply and demand...
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