Question

In 2018, Firm A extracts 50,000 tons of ore, valued at $100 per ton, using previously existing machinery. Firm B produces 10,000 tons of steel sheets, valued at $3,000 per ton, having bought and used all of the ore produced by Firm A. Firm C manufactured 5,000 vehicles and sold them all to households for $25,000 each, having purchased 8,000 tons of steel sheets from Firm B. In addition, Firm C imported 5,000 engines from a foreign subsidiary each valued at $5,000, and purchased 20,000 tires from Firm D for $100 each. Firm D produced 100,000 tires valued at $100 each, but only sold 60,000 tires during 2018. Firm D purchased 2,000 tons of steel sheets from Firm B since all of their tires are steel belted radials.

Answer 1

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