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An item is defective (worth 7000) with probability 0.7 or genuine (worth 10000); sellers accept at least 3000 and 7000 respectively. What price should you offer?

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You may buy an item that is defective with probability 0.7, in which case it is worth 7000, or genuine with probability 0.3, in which case it is worth 10000. A seller of a defective item accepts any price of at least 3000 and a seller of a genuine item accepts at least 7000. How should you price your offer?

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