Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?

A) $30
B) $40
C) $50
D) $60

Question

Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?A) ​$30B) $40C) $50D) ​$60

PineappleKING APPLE · Accepted Answer

Final Answer : A, Explanation :  The surplus for professional chefs buying the no-name brand is calculated as the difference between the value they place on it and the price they pay. If the firm wants to sell both versions, the price of the no-name brand is set to ensure both are sold, typically at the value the non-professional chefs place on it. Assuming the value to professional chefs is $100 and the price is $70, the surplus is $30.

Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?

A) $30
B) $40
C) $50
D) $60

Definitions

Learning Objectives

Learning Objectives

Related questions

Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?A) ​$30B) $40C) $50D) ​$60

Definitions

Learning Objectives

Learning Objectives

Related questions

Given that the firm wants to sell both the versions,how much surplus does buying the no-name brand give the professional chefs?

A) $30
B) $40
C) $50
D) $60