Why does tcu tend to lead business cycle peaks? by definition, it must have the same indicator status as industrial production. the durable goods component of industrial production is always declining near the end of an expansion, and since industrial capacity is still growing, tcu starts decreasing near the end of an expansion. since industrial capacity is always declining near the end of a recession, whenever tcu is increasing, output tends to be decreasing since industrial capacity rarely is declining near the end of a recession, whenever tcu is increasing, output tends to be increasing.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?