A farmer produces com, which is valued at $1.00. The corn is then sold to a miller, who turns it into cornmeal, which is valued at $2.00. The miller then sells the cornmeal to a bakery, which uses it to make cornbread, valued at $4.00. Finally, the bakery sells the cornbread to a grocery store, where it is sold to a consumer for $8.00. In the table below, show the value added at each stage of production, and the total value added to GDP. Firm Farmer Miller Baker Grocery Store Total Value Added to GDP Value Added 69 69 69
A farmer produces com, which is valued at $1.00. The corn is then sold to a miller, who turns it into cornmeal, which is valued at $2.00. The miller then sells the cornmeal to a bakery, which uses it to make cornbread, valued at $4.00. Finally, the bakery sells the cornbread to a grocery store, where it is sold to a consumer for $8.00. In the table below, show the value added at each stage of production, and the total value added to GDP. Firm Farmer Miller Baker Grocery Store Total Value Added to GDP Value Added 69 69 69
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter23: Price-searcher Markets With Low Entry Barriers
Section: Chapter Questions
Problem 3CQ
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