As per the given case, the amount that is added to GDP is $350.
<h3>What do you mean by GDP?</h3>
GDP refers to the measure of all final goods and services that have been bought by the final user produced in the country.
As per the given case, Farmer smith bought seed and fertilizer for $100. He grew wheat that he sold to the wander bread company. Consumers bought the bread from the grocery for $350. Therefore, it was added to the GDP.
So, $350 was added to the GDP.
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Answer:
Check the explanation
Explanation:
In the field of economics, to draw a graph that will show a cost curve of any item will involve the costs of production as a function of the overall quantity that was produced. When there’s a free market economy, productively effective and efficient firms optimize their production procedures by reducing their cost consistent with each potential level of production, thereby resulting into a cost curve.
Kindly check the attached images below to see the full explanation and the graphical presentation of the total cost curve.
Answer:
$20,000
Explanation:
Calculation for the amount of retained earnings as of December 31, Year 2.
Using this formula
Retained earnings=Total cash -Notes payable-common stock
Where,
Total cash= $195,000
Notes payable= $90,500
Common stock= $84,500
Let plug in the formula
Retained earnings = $195,000 − $90,500 − $84,500
Retained earnings= $20,000
Therefore the amount of retained earnings as of December 31, Year 2 will be $20,000
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