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?

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?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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