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Mint Chocolate Chunk (MCC) ice cream made by Graetter's of Cincinnati, OH contains specially-made confectioner's chips the size of Prof. Ernst's big toe.it's insanely good stuff. Unfortunately, it's made in very small batches to maintain creamy mint quality, and it doesn't travel well. Graetter's wants to compete with PennState Creamery and is considering opening a small-batch processing plant in State College. But they have to figure out how to ship the special chocolate chips in from their Ohio cho colate manufacturing center while maintaining quality. Or should they forget local production and ship finished product in from Cincinnati if the border is open? Things are getting expensive. So let's help make some decisions. Graetter's can make money selling MCC for $4.75/pint in Ohio. To ship in the chocolate and make MCC in State College will put the price at $8/pint and people can't get enough of it at that price. Question 1 If Graetter's wanted to just ship finished Mint Chocolate Chunk ice cream into State College from Ohio, what does the Law of One Price indicate they could spend on shipping expenses? Now, let us suppose MCC can't be shipped to State College because a band of rabid Buckeyes refuse to let it cross the border. So the State College plant opens. We assume the following supply & demand functions State College Supply = Ssc -4+2Psc State College Demand = Dsc - 42- 2Psc Question 2 If we can't ship MCC ice cream from Ohio to PA what will be the formula for market equilibrium in State College? Ouestins3

Mint Chocolate Chunk (MCC) ice cream made by Graetter's of Cincinnati, OH contains specially-made confectioner's chips the size of Prof. Ernst's big toe.it's insanely good stuff. Unfortunately, it's made in very small batches to maintain creamy mint quality, and it doesn't travel well. Graetter's wants to compete with PennState Creamery and is considering opening a small-batch processing plant in State College. But they have to figure out how to ship the special chocolate chips in from their Ohio cho colate manufacturing center while maintaining quality. Or should they forget local production and ship finished product in from Cincinnati if the border is open? Things are getting expensive. So let's help make some decisions. Graetter's can make money selling MCC for $4.75/pint in Ohio. To ship in the chocolate and make MCC in State College will put the price at $8/pint and people can't get enough of it at that price. Question 1 If Graetter's wanted to just ship finished Mint Chocolate Chunk ice cream into State College from Ohio, what does the Law of One Price indicate they could spend on shipping expenses? Now, let us suppose MCC can't be shipped to State College because a band of rabid Buckeyes refuse to let it cross the border. So the State College plant opens. We assume the following supply & demand functions State College Supply = Ssc -4+2Psc State College Demand = Dsc - 42- 2Psc Question 2 If we can't ship MCC ice cream from Ohio to PA what will be the formula for market equilibrium in State College? Ouestins3

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 15CQ
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Mint Chocolate Chunk (MCC) ice cream made by Graetter's of Cincinnati, OH contains specially-made confectioner's chips the size of Prof. Ernst's big toe.it's insanely good stuff. Unfortunately, it's made in very small batches to maintain creamy mint quality, and it doesn't travel well. Graetter's wants to compete with PennState Creamery and is considering opening a small-batch processing plant in State College. But they have to figure out how to ship the special chocolate chips in from their Ohio cho colate manufacturing center while maintaining quality. Or should they forget local production and ship finished product in from Cincinnati if the border is open? Things are getting expensive. So let's help make some decisions. Graetter's can make money selling MCC for $4.75/pint in Ohio. To ship in the chocolate and make MCC in State College will put the price at $8/pint and people can't get enough of it at that price. Question 1 If Graetter's wanted to just ship finished Mint Chocolate Chunk ice cream into State College from Ohio, what does the Law of One Price indicate they could spend on shipping expenses? Now, let us suppose MCC can't be shipped to State College because a band of rabid Buckeyes refuse to let it cross the border. So the State College plant opens. We assume the following supply & demand functions State College Supply = Ssc = -4+2Psc State College Demand = Dsc = 42- 2Psc Question 2 If we can't ship MCC ice cream from Ohio to PA what will be the formula for market equilibrium in State College? Ounstine
Transcribed Image Text:Mint Chocolate Chunk (MCC) ice cream made by Graetter's of Cincinnati, OH contains specially-made confectioner's chips the size of Prof. Ernst's big toe.it's insanely good stuff. Unfortunately, it's made in very small batches to maintain creamy mint quality, and it doesn't travel well. Graetter's wants to compete with PennState Creamery and is considering opening a small-batch processing plant in State College. But they have to figure out how to ship the special chocolate chips in from their Ohio cho colate manufacturing center while maintaining quality. Or should they forget local production and ship finished product in from Cincinnati if the border is open? Things are getting expensive. So let's help make some decisions. Graetter's can make money selling MCC for $4.75/pint in Ohio. To ship in the chocolate and make MCC in State College will put the price at $8/pint and people can't get enough of it at that price. Question 1 If Graetter's wanted to just ship finished Mint Chocolate Chunk ice cream into State College from Ohio, what does the Law of One Price indicate they could spend on shipping expenses? Now, let us suppose MCC can't be shipped to State College because a band of rabid Buckeyes refuse to let it cross the border. So the State College plant opens. We assume the following supply & demand functions State College Supply = Ssc = -4+2Psc State College Demand = Dsc = 42- 2Psc Question 2 If we can't ship MCC ice cream from Ohio to PA what will be the formula for market equilibrium in State College? Ounstine
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