Samsung sells its 16in monitors to Apple for £85 per screen. Its estimated cost is £49 and Apple is willing to pay up to £99. The value creation (VC) and consumer surplus (CS) in this case are equal to: a. VC=£50 , CS=£14. b. Impossible to say. c. VC=£36 , CS=£14. d. VC=£99 , CS=£36
Samsung sells its 16in monitors to Apple for £85 per screen. Its estimated cost is £49 and Apple is willing to pay up to £99. The value creation (VC) and consumer surplus (CS) in this case are equal to: a. VC=£50 , CS=£14. b. Impossible to say. c. VC=£36 , CS=£14. d. VC=£99 , CS=£36
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Samsung sells its 16in monitors to Apple for £85 per screen. Its estimated cost is £49 and
Apple is willing to pay up to £99. The value creation (VC) and
case are equal to:
a. VC=£50 , CS=£14.
b. Impossible to say.
c. VC=£36 , CS=£14.
d. VC=£99 , CS=£36
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