What is the value added by all the firms A–E from the production of a product as described below? What did each firm add separately in value and what does it total?
The value added by all firms is $7600, or the final sales value. Firm A: added $1610. Firm B: added $900. Firm C: added $1200. Firm D: added: $1510. Firm E: added $2400. The value added by all firms totals $7600 and equals the final sales value by Firm E ($7600).
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An increase in the interest rate will stimulate firms' investment spending
a. True b. False Indicate whether the statement is true or false
Alison is deciding how to spend the next hour. We ask her to rate the utility she would get from an hour of each activity. She would get utility of 4 from an hour of reading, utility of 2 from an hour of playing video games, and utility of 6 from jogging. Based on this information, economists could predict that Alison will:
A. read. B. play video games. C. go jogging. D. do nothing, since none of the activities give her utility greater than 10.