What price maximizes your expected profit

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You have two types of buyers for your product. The first type values your product at $10; the second values it at $6. Forty percent of buyers are of the first type ($10 value); 60% are of the second type ($6 value). What price maximizes your expected profit?

a. $10

b. $6

c. $7.60

d. $8

Reference no: EM131047183

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