Google just purchased a company called Nest for over 3 billion dollars. Their most important product is a learning thermostat which adjusts the temperature in your home to keep you comfortable while reducing energy use. It's current retail price is $249.
Let's pretend that Google's new management is hoping to maximize revenue by lowering the price and making the thermostat available to a broader audience.
Assume the following:
Which of the following prices would give Google the largest amount of revenue: