Answer: $3,350
Explanation:
GDP is the addition of value of goods and service minus purchase of intermediate goods.
Formula to calculate value-added by each firm is shown below:
Value-added = Sales by Firm + Change in stock – purchase of raw material
Value added by firm A = $5 × 200 + 0 – ($250 + $200)
= $550
Value added by firm B = $7 × 300 + 0 – ($150 + $100)
= $1,850
Value added by firm C = $1,000 + 0 - $50
= $950
Economy's GDP = Value added by firm A + Value added by firm B + Value added by firm C
= $550 + 1,850 + 950
= $3,350
The value of GDP is $3,350
Answer:
I need some points please
Answer:
<u>A) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.</u>
Explanation:
- As there exist four basic structures of the market economy in the form of perfect competition, imperfect competition, oligopoly, and monopoly.
- Thus without any legal system of trade in the market economy, the profits that are generated by the public and private sectors can be taken away by these entities as a large number of small firms tends to compete in the market against each other with there homogenous products.
- Thus under such circumstances, the market economy would deprive all the profits made by the other forms in the market and put barriers to entry for others. Buyers thus will be deprived of the quality products.
Answer:
8,200 units
Explanation:
Given that,
Fixed costs = $378,200
Selling price = $179 per unit
Variable costs = $118 per unit
Target (pretax) income = $122,000
Contribution margin:
= Selling price - Variable costs
= $179 per unit - $118 per unit
= $61 per unit
Unit sales at a desired profit of $122,000:
= (Fixed expenses + Target profit) ÷ Contribution margin
= ($378,200 + $122,000) ÷ $61 per unit
= $500,200 ÷ $61 per unit
= 8,200 units
