A firm is looking for the best (i.e., lowest) price from one of two sellers. It can

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A firm is looking for the best (i.e., lowest) price from one of two sellers. It can approach each seller only once (and at no cost). Seller X’s price is distributed uniformly between $30 and $40. Seller Y’s price is distributed uniformly between $32 and $38. Which seller should the firm approach first, and what is the maximum price it should accept?

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Managerial economics

ISBN: 978-1118041581

7th edition

Authors: william f. samuelson stephen g. marks

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