An organic farm sells tomatoes for 50 cents each at the local farmers market. It only cost them (in the accounting measure) 5 cents to produce each tomato. What happens to GDP with the sale of each tomato?
A) It increases by 5 cents.
B) It increases by 45 cents.
C) It increases by 50 cents.
D) It increases by 55 cents.
E) It remains unchanged because organic farmers try not strive for profit.
C
You might also like to view...
A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12 . From this information we can conclude that
a. the firm is currently earning zero profit. b. the profits of the firm are negative. c. firms are likely to enter this market in the long run. d. the firm would earn more profit by reducing output.
The academic studies that were the intellectual justification for Head Start suggested that money spent on early childhood education would be a wise investment because
A. kids deserve a quality education. B. there would be higher taxes paid when these children grew up. C. there would be lower welfare and incarceration costs when these children grew up. D. B) and C).