Odysseus is fascinated by Microsoft's new Surface Laptop Studio. He is happy to purchase this product at $2,200 but not likely to purchase it at $2,201. This product is currently available at Microsoft Online Store at $1,900. It is believed that Microsoft had spent $1,100 per unit to outsource its assembly to its supplier. This supplier will switch its production line towards Apple's iPad Pro if Microsoft does not guarantee at least $950 per unit (which is the amount Apple guarantees). Let's assume that Microsoft produced only one unit of Surface Laptop Studio. Odysseus purchased this product. Please fill in the blanks below: What is Odysseus' willingness to pay? What is Odysseus' surplus (consumer surplus)? What is the total value captured by Microsoft? What is supplier's opportunity cost? What is the total value created by Microsoft?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Odysseus is fascinated by Microsoft's new Surface Laptop Studio. He is happy to purchase this product at $2,200 but not likely to purchase
it at $2,201. This product is currently available at Microsoft Online Store at $1,900. It is believed that Microsoft had spent $1,100 per unit to
outsource its assembly to its supplier. This supplier will switch its production line towards Apple's iPad Pro if Microsoft does not guarantee at
least $950 per unit (which is the amount Apple guarantees). Let's assume that Microsoft produced only one unit of Surface Laptop Studio.
Odysseus purchased this product. Please fill in the blanks below:
What is Odysseus' willingness to pay?
What is Odysseus' surplus (consumer surplus)?
What is the total value captured by Microsoft?
What is supplier's opportunity cost?
What is the total value created by Microsoft?
Transcribed Image Text:Odysseus is fascinated by Microsoft's new Surface Laptop Studio. He is happy to purchase this product at $2,200 but not likely to purchase it at $2,201. This product is currently available at Microsoft Online Store at $1,900. It is believed that Microsoft had spent $1,100 per unit to outsource its assembly to its supplier. This supplier will switch its production line towards Apple's iPad Pro if Microsoft does not guarantee at least $950 per unit (which is the amount Apple guarantees). Let's assume that Microsoft produced only one unit of Surface Laptop Studio. Odysseus purchased this product. Please fill in the blanks below: What is Odysseus' willingness to pay? What is Odysseus' surplus (consumer surplus)? What is the total value captured by Microsoft? What is supplier's opportunity cost? What is the total value created by Microsoft?
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