ser in 1985, the Coca-Cola Company was faced with soaring prices for cane sugar.

Question

ser in 1985, the Coca-Cola Company was faced with soaring prices for cane sugar. A 1-cent increase in the price of cane sugar raised its total cost by $20 million. Rather than raise price, the company looked for a cheaper input and replaced cane sugar with corn sugar. Because corn was more plentiful in the United States, it was cheaper to produce a) Is sugar a foxed or variable input? b). Did the switch in the input iower TC? 43 sr The Conanian economy: Consumption $200 billion Government spending $88 billion Imports $17 biüllion Investment spending $70 billion Exports $10 billion Based on the data above compute the following GDP in Conania

Explanation / Answer

Sugar is a raw material in production of Coco - cola . So sugar is a variable cost.

Yes, switching to corn sugar lower total cost.

GDP = Consumption spending+ Government spending+ Investment spending+ ( Exports- Imports)

         = $200 billion+ $88 billion+ $70 billion+$(10-17) billion = $351 billion

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.