A supplier in the country of Whiteland has current output of 10 Million units priced at
$1.10 per unit. Factor prices rise and costs increase to $1.30 per unit. Uh-oh… now not earning
profit and producing for a $20 Million loss. The availability of competitor substitutes convince
the supplier a price increase is out of the question.
A purchasing agent from the country of Knightland makes a timely appearance and offers
to purchase for import an additional 10 Million units priced at $0.80 per unit.
For 3 pts: do you take the deal?
For 4 pts: what principle/s do you apply to make your decision?
For 3 pts: what is the size of the opportunity, if-any?