Naval Consumer Surplus: Getting More Than You Paid For
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Jul 25, 2019 Discover how consumer surplus unlocks hidden value in everyday purchases. Dive into the joy of getting more than you paid for, like the delightful experience of a morning coffee. Unpack how businesses leverage this concept to create immense value for their customers. The conversation delves into the balance between perceived worth and actual cost, revealing why many are happy to spend more. It's all about finding that extra joy and satisfaction in the things we buy!
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Consumer Surplus
- Consumer surplus is the extra value consumers receive when they pay less than they're willing to.
- Businesses generate consumer surplus, benefiting customers.
Coffee Example
- Speaker 0 would pay $20 for their morning coffee, demonstrating high willingness to pay.
- Starbucks charges less, creating consumer surplus for the speaker.
Businesses and Surplus
- All businesses create consumer surplus, which is a positive aspect.
- Considering this helps counter narratives about companies being inherently evil.