Long ago when apples were cheap, two ladies went to market and each sold 30 apples on different stalls; Mrs Rosy sold hers at 2 for a penny, Mrs Juicy at 3 for a penny. The next week they decided to share a stall and sell 60 apples between them at 5 for 2 pennies. At the end of the day they had 24 pennies - a penny less than they usually made between them? Can you work out where the other pennv went?
Sure, before, Ms Rosy was selling apples for .5 cent. Under the partnership, she is selling them for .4 cents (20 cents/five). She is now losing profits.
Ms Juicy was selling them for .33333 each, under the new partnership, she is selling them for .4 cents..she is now making more.
On the average, then the price of the apples has dropped, and Ms Rosy is losing money on each sale, money going to Ms Juicy and the last penny to the customers.l.