Compute the change in value created and value captured

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GreenTable is a famous carpenter shop. It purchases logs from a woodcutter, at the cost of $20 per trunk, and uses one log to produce each table. The woodcutter has a cost of $10 to cut and transport each log. Suppose GreenTable suddenly becomes more efficient at using wood, so that now it can produce two tables with a single log. Assume the woodcutter does not change the price charged to the carpenter for each log. Compute the change in Value created and Value captured (in dollars) for the production and sale of one table.

Reference no: EM133100896

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