Wehn Refiners, Inc

question 7

Multiple Choice

Wehn Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $40 to buy from farmers and $13 to crush in the company's plant. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for $28 or processed further for $18 to make the end product industrial fiber that is sold for $37. The cane juice can be sold as is for $31 or processed further for $25 to make the end product molasses that is sold for $66.
-How much more profit (loss) does the company make by processing the intermediate product cane juice into molasses rather than selling it as is?

• A)$(43)
• B)$(17)
• C)$10
• D)$(3)

---

Definitions:

P

Typically refers to "Price" in economic models, representing the monetary value assigned to a good or service in the market.

V

Typically stands for Velocity in economic contexts, referring to the rate at which money circulates in the economy.

Monetary Policy

The process by which a central bank, like the Federal Reserve, controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Primary Growth

The initial stage of growth or expansion in an organism, market, or economic indicator, often characterized by rapid increases or significant changes.