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 to each pineapple is the difference between the selling price and the cost of production. 
Cost of production per pineapple = $0.15 (seeds) + $0.25 (fertilizer) + $0.25 (forgone output) = $0.65
Value added per pineapple = selling price - cost of production = $1.25 - $0.65 = $0.60
Therefore, choice C is correct.

A Convenience Store Pays a Farmer $1