Answer:
A. There is no change in real output
B. There is a change of $80,000,000 in the real output.
Explanation:
A. With regards to the question, the output being referred to is the gold amount produced in an imaginary situation.
Sales revenue for the first year is $80,000,000 and it doubled to $160,0000 the following year and the next. Since there is 100% increase in the price of gold over same period, it therefore means that the 100% price increase results in 100% increase in sales revenue.
The above simply means that the actual output of gold from the mine remains the same
B. Where the price remains the same in a possible scenario, it would then be that to achieve full increment in sales revenue(100%), then the actual output of Glitter Gulch would also change by the full output(100%).
The change in value would be
= $160,000,000 - $80,000,000
= $80,000,000
