Question
1) Tylo tries some of Stefania's taro spumoni.It costs Tylo $5 and is so delicious that Tylo gains a consumer surplus of $10.What is Tylo's
1) Tylo tries some of Stefania's taro spumoni.It costs Tylo $5 and is so delicious that Tylo gains a consumer surplus of $10.What is Tylo's willingness to pay?
2) Tylo tells Robert how great the Spumoni Shoppe is. Robert thinks to himself, "Wow, das muss ich probieren!"Robert drives from campus to Alton and gets the Schwarzwaelder Kirschtorte flavor.The spumoni costs $5, the gasoline and wear and tear on Robert's car costs $6, and the trip takes Robert an hour in which he could otherwise have been TAing for $9.What is Robert's accounting cost for the spumoni?
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