I need a little help with a problem I am working on. So here's the situation, a seller can produce a apple for $1.00$ and I need to find the optimal price of selling the apple and expected profit per buyer if the distribution of the value of the apple is EXP(1).
So I just need some confirmation on what I am doing. What I have is this:
Expected profit = $(v-1)\cdot (1-F(v))$
Optimal price = derivative of expected profit w.r.t. to $v$ set equal to zero then solve for $v$
I hope this makes sense guys. Like I said I just want make sure I am doing this right or else I am going to have to read the chapter for the 3rd time.