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Question: Groceries for the Gourmet Palate No food, it seems, is safe from being repackaged to look like an upscale product. Samuel Adams' $120 Utopias, in a ridiculous copper-covered 24-oz. bottle meant to resemble an old-fashioned brew kettle, is barely beer. It's not carbonated like a Bud, but aged in oak barrels like scotch. It has a vintage year, like a Bordeaux, is light, complex, and free of any alcohol sting, despite having six times as much alcohol content as a regular can of brew
a. Predict whether the $120 price tag on the Utopias is at, above, or below marginal cost:
(i) in the short run and
(ii) in the long run.
b. Do you think that Samuel Adams' Utopias makes the market for beer inefficient?
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