Question

9. Harris Teeter can buy orange juice from three growers. The following table shows the cost and capacity of each source including the cost to Harris Teeter of storing and selling the juice. Source Capacity (thousands of gallons per day) Florida Farms Citrus Grove Sunny Days Cost per gallon $2.50 $2.75 $3.00 Each day, Harris Teeter sells 4 thousand gallons of juice at a price of 3.00. The allocation of orange juice that results is A. Inefficient, quantity supplied does not equal the quantity demanded. Inefficient, because price is greater than marginal cost. C. Efficient, quantity supplied equals the quantity demanded. Efficient, price equals marginal cost.