Question: The Draeger's grocery store in Menlo Park will buy Parmesan Reggiano cheese from any supplier for $2,000 per 100-pound wheel.
a. State your personal indifferent buying price for getting a 100 pound wheel of Parmesan Reggiano cheese, eating what you want (over time), and throwing away the rest. Briefly explain your choice.
b. A friend of yours owns a 100 pound wheel of Parmesan Reggiano cheese. He invites you to bid on the wheel. State the maximum amount you would bid. Briefly explain your choice.
c. Summarize the differences and similarities in your answers to parts a and b.