Answer to Question #77591 in Economics for Mohit

Question

A farmer sold 100kg of wheat grains at ₹10/kg to a Miller . Miller converted it 100kg of wheat into 100kg of flour and sold it at ₹12/kg.find the production of miller

Answer 1

Basically, miller earns on the difference of prices for wheat and flour.
P(miller) = (100*12) – (100-10) = 20 ₹