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Consider the following situation. There are two suppliers (S1 and S2) , two firms (F1 and F2) and one buyer(B). Each supplier can transact with at most one firm, and vice versa. The buyer can transact with at most one firm. Each supplier (S1 and S2) has an opportunity cost of $30 of providing resources to a firm. The buyer (B) has a willingness-to-pay of $200 for the first firm (F1)'s product, and a willingness-to-pay of $250 for the second firm(F2)'s products. What is the total added-value created by the players?
Options
$140
$280
$170
$420
$220
Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate
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