Question
You work at the local branch of Chicken 4 Dayz, a national fried chicken chain. You have been working on a new dipping sauce for
You work at the local branch of Chicken 4 Dayz, a national fried chicken chain. You have been working on a new dipping sauce for the chicken nuggets with chili. Your co-workers really like it and think you should add it to the menu. Producing the sause will cost $1,000 per year as you have sourced some unique chilies from Mexico which cost $200 in shipping. You expect that the addition of the sause will increase sales of your chicken nuggets by $7,000 annually.
What are the total cost or benefit from the externalities of adding the new sause to the menu?
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