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Half of all your potential customers would pay $10 for your product, but the other half would only pay $8. You cannot tell them apart.
Half of all your potential customers would pay $10 for your product, but the other half would only pay $8. You cannot tell them apart. Your marginal costs are $4. If you set the price at $8, the expected profit is:
$3
$4
$5
$6
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