Question: Suppose that the firm cannot work out how it is careful and who is not. Who will buy the warranty at a price of $170

  1. Suppose that the firm cannot work out how it is careful and who is not. Who will buy the warranty at a price of $170 (the average of Alejandro and Sofia's reservation prices)? What would the firm's profits be if it offered to sell its warranty to anyone who wants it at this price?Assume that the customers will treat the computer with care.

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