Shell Designs, Inc. faces the following monthly demand for its designer coffee mugs, which are hand-made using a special clay from imported from Costa Rica:
The average cost of producing each hand-made coffee mug is $8, and costs are constant.
-The trouble with selling coffee mugs on the Internet at uniform prices is that consumers enjoy $______________ of consumer surplus, which could be captured if Shell Designs sold its mugs at art and craft shows where it could practice first-degree price discrimination (at least in theory).

Question

Shell Designs, Inc. faces the following monthly demand for its designer coffee mugs, which are hand-made using a special clay from imported from Costa Rica:
  The average cost of producing each hand-made coffee mug is $8, and costs are constant.
-The trouble with selling coffee mugs on the Internet at uniform prices is that consumers enjoy $______________ of consumer surplus, which could be captured if Shell Designs sold its mugs at art and craft shows where it could practice first-degree price discrimination (at least in theory).

Quizplus · Accepted Answer

The Answer of Shell Designs, Inc. faces the following monthly demand for its designer coffee mugs, which are hand-made using a special clay from imported from Costa Rica:
  The average cost of producing each hand-made coffee mug is $8, and costs are constant.
-The trouble with selling coffee mugs on the Internet at uniform prices is that consumers enjoy $______________ of consumer surplus, which could be captured if Shell Designs sold its mugs at art and craft shows where it could practice first-degree price discrimination (at least in theory).