A convenience store pays a farmer $1.25 per pineapple.If it costs the farmer $0.15 in seeds,$0.25 in fertilizer,and $0.25 in forgone output to grow each pineapple,the value added by the farmer to each pineapple is

Question

Quizplus · Accepted Answer

The value added by the farmer is the revenue received from selling the pineapple minus the total cost of growing it. 
Revenue per pineapple = $1.25 
Total cost per pineapple = $0.15 + $0.25 + $0.25 = $0.65 
Value added per pineapple = $1.25 - $0.65 = $0.60 
Therefore, the best answer choice is C, which is closest to the calculated value added of $0.60.

A Convenience Store Pays a Farmer $1