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goldfiish [28.3K]
4 years ago
10

Rice is a cheap staple food eaten several times a day by many people all over the world. in trufflelandia, residents also eat ex

pensive mushrooms known as truffles once every year as a birthday celebration. rice keeps the people alive and truffles are not necessary for sustaining life. why is rice so cheap and why are truffles so expensive?
Social Studies
1 answer:
stiv31 [10]4 years ago
8 0

Answer: The rice is a lot cheaper if compared to the truffles because of the marginal value.

Explanation: Marginal Value of a product is the marginal benefit minus the marginal cost. Rice is eaten so much by so many people in a regular basis that an additional serving of rice has little marginal value. On the other hand, another serving of truffles has a very high marginal value since its consumption depends on a variety of factors.    

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