What is your optimal price and expected profit

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Suppose that you have 2 buyers. The first buyer values your product at $10, and the second buyer values your product at $6. You estimate that the probability of getting a high valued customer is 40%. Your marginal costs are $3. What is your optimal price and expected profit? a. Price at $6, Profit = $1 b. Price at $6, Profit = $3 c. Price at $10, Profit = $1 d. Price at $10, Profit = $4

Reference no: EM131160426

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