Gas Country is considering selling premium gasoline.It already sells regular for $3.09/gallon and would sell premium gasoline for $3.22/gallon.The cost to further refine the regular gas into premium would be $.12/gallon.A cost that would not be considered in this decision would be

Question

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The cost of refining the regular gasoline is already included in the cost to further refine the regular gas into premium, so it would not be considered separately in the decision of whether or not to sell premium gasoline. The extra revenue generated by selling premium, the cost of further processing the regular gas into premium gas, and the opportunity cost of the regular gasoline would all be relevant factors to consider.

Gas Country Is Considering Selling Premium Gasoline