9. What is the value added by all the irms A-E from the production of a product
ID: 1151449 • Letter: 9
Question
9. What is the value added by all the irms A-E from the production of a product as described below? What did each firm add separately in value and what does it total? Stage of production Sales value of product Firm A Firm B Firm C Firm D Firm E $ 4,500 8,600 14,700 20,100 32.300 10. The following data show nominal GDP and the appropriate price index for several years. Compute real GDP for each year and indicate whether you have "inflated" or "deflated" nominal GDP in finding real GDP. All GDP are in billions. Nominal Price level Inflated (I) Year GoP index Real GDP Deflated (D) 1 $117 2 124 143 149 5 178 120 104 85 96 220 112 143Explanation / Answer
(9)
Value added by Firm A = $4,500
Value added by Firm B = $(8,600 - 4,500) = $4,100
Value added by Firm C = $(14,700 - 8,600) = $6,100
Value added by Firm D = $(20,100 - 14,700) = $5,400
Value added by Firm E = $(32,200 - 20,100) = $12,100
Total value added by all firms = $(4,500 + 4,100 + 6,100 + 5,400 + 12,100) = $32,200
NOTE: As per Chegg Answering Policy, 1st question is answered.
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