Why are extracted properties of food often cheaper than the whole food?

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For example, olive oil and olives, or orange juice and orange. Why is the extracted property of the food cheaper than the food itself?

In: Economics

11 Answers

Anonymous 0 Comments

Because we want olives and vegetables and such to look nice. The oranges which are pressed to make juice don’t look as nice as the ones you buy. Therefore the oranges you buy are more expensive.

Also, transporting orange juice is cheaper than transporting oranges. After all the oranges must still look good when they arrive at the store.

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