Base Case Situation: A perfectly commonplace median widget available in the market from Acme Manufacturing retails for $125 and costs $99.50 to...

Base Case Situation: A perfectly commonplace median widget available in the market from Acme Manufacturing retails for $125 and costs $99.50 to manufacture. You the customer would willingly pay $150.00 for this widget. 

1,   Your other neighbor, Bartholomew has a willingness to pay of $175 for this new Pinnacle