Willingness to Pay: A company comes up with a new baby bottle that is resistant to bacteria.
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Question:
Willingness to Pay: A company comes up with a new baby bottle that is resistant to bacteria. Using the baby bottle for the first 6 months of life reduces the probability of a stomach infection by 50%. After doing research the car company sets the price of the baby bottle at $40. Assume babies have 10 stomach infections in their first 6 months of life without the new bottle. How much must the baby bottle company have concluded people are willing to pay to avoid 1 baby stomach infection?
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