This time, our reading not only gives us a real-world example of cost-analysis, but also yields an excellent transition for our next discussion on the determination of price. As a result, consider the following:
- The article states, “Bottle price is directly linked to cost of producing.” What is the economic reasoning behind this statement?
- If we hold all things related to wine production constant, except for land, why might a winemaker pay more for a vineyard in Napa Valley (per acre) than for land in any other wine region?
Our classroom discussion will take place after spring break!
Posted by Prof. C-S