Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 3

Ben and Jerry's Homemade Inc. has received much favorable press for its Rainforest Crunch ice cream. It uses official rain forest nuts and berries and all natural ingredients; it also sends a percentage of profits to charities. However, another flavor, Cherry Garcia, contains sulfur dioxide preservatives, and other flavors use margarine, not butter. What are the problems a firm faces if it is "politically correct" in some products but not others