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What is the monetary value of the product to Jerry

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Q1) Ben sells a Phone to Jerry for $300. It costs Ben $200 to build the phone. What is the monetary value of the product to Jerry?

Q2) Jerry integrates the Phone from Justin (see previous problem) into a more advanced system FRS. The FRS consists of two components. The first is the Phone (supplied by Ben) and the other is a chip supplied by Tom. Jerry has purchased the chip for $300 from Tom. Jerry sells the FRS to Jim for $800. Jerry's profit on the FRS is $150. Assuming that the profit can be equally divided between the phone and the chip, what is the net monetary value captured by Jerry for the FRS?

Reference no: EM132847851

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