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The Parable of the Potato Patch


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In the town of Weirdsville, the residents LOVE potato, which they buy at the Potato Patch using credits. Very normal. Except that every time you ask for potato, they say how much you can buy and the price per pound.

Potatoes please.
   You get a pound at 3.81 per pound
May I have more?
   Why not? Another half pound at 9.38
But I need more.
   Fine. Another half pound at 7.03
Still not enough,
   Ok. Another pound at 7.03
I have a big family
    Right. Another 2 pounds at 5.27
And guests.
    Guests?. Another 4 pounds at 3.81
A lot of guests.
    Party is it? Another 8 pounds at 4.69
And few will be staying over.
    Interesting. Another 16 pounds at 3.30
Some might be moving in.
    Very interesting. Another 16 pounds at 2.78
With their families.
    Sure you know what you are doing? Another 16 pounds at 1.83 (my lowest rate)
Actually, I need all the potatoes
    Yes, it seems you do. From now on, you always get 16 pounds at 3.22

One day a visitor arrived in Weirdsville. He visited the potato patch but bought nothing. On his way out he was heard remarking "In my town our potato patch is surrounded by billboards. But the potatoes are free".

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From diamond's doctoral dissertation in Economcs, "Fooling Some of the People All of the Time: Marginal Cost of Potatoes Under Monopoly"

Edited by diamond Marchant
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Update: changing last line to....

One day a visitor arrived in Weirdsville. He visited the potato patch but bought nothing. On his way out he was heard remarking "In my town our patch is called Safeway and there, a potato is a potato. They all cost the same and we buy only what we need”.

Edited by diamond Marchant
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