QUESTIONS FOR CLASSROOM DISCUSSION ON COST ANALYSIS

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

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