Use the following table for question
-Given that the firm offers both the products would the chefs ever pay the full $100 for the high-end wok
A)Yes,because they value it at $100
B)No,because they value it at $70
C)No,because they can get a positive consumer surplus buying the no-name brand
D)All of the above

Question

​Use the following table for question
-Given that the firm offers both the products would the chefs ever pay the full $100 for the high-end wok​
A)​Yes,because they value it at $100 
B)No,because they value it at $70 
C)No,because they can get a positive consumer surplus buying the no-name brand 
D)​All of the above

Quizplus · Accepted Answer

If the chefs are rational consumers, they will not pay the full $100 for the high-end wok if they can get a positive consumer surplus by buying the no-name brand. This means that they value the high-end wok at less than $100 or they feel they can get a better deal elsewhere. Therefore, choice C is the best answer. Choices A and B are incorrect because they assume that the chefs value the high-end wok at a specific price, which may not be the case.

​Use the Following Table for

Use the Following Table for