Suppose that you produce an award winning yogurt that you sell at a farmer's market. It is produced mainly from grass fed cows and you don't use antibiotics, growth hormones or other "artificial" inputs. A typical customer is willing to pay (in dollars) 10 for a 32oz bottle and 10 for a second bottle of the same size. Suppose that your unit cost is 2 per bottle. You currently charge 3 per bottle. What is the total surplus? Note: do not enter a dollar sign, $, in your answer. Just enter the number.
Suppose that you produce an award winning yogurt that you sell at a farmer's market. It is produced mainly from grass fed cows and you don't use antibiotics, growth hormones or other "artificial" inputs. A typical customer is willing to pay (in dollars) 10 for a 32oz bottle and 10 for a second bottle of the same size. Suppose that your unit cost is 2 per bottle. You currently charge 3 per bottle. What is the total surplus? Note: do not enter a dollar sign, $, in your answer. Just enter the number.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...
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