(Answered) Your company has a customer who is shutting down a

Economics

Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine.The company could keep itin inventory for a possible future product and estimates that the reservation value is $250,000.Your dealings on the second hand market lead you to believe that thereis a 0.4 chance a random buyer will pay $300,000, a 0.25 chance the buyer will pay $350,000, a 0.1chance the buyer will pay $400,000,and a 0.25chance it will not sell.If you must commit to a posted price, what price maximizes profits?

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