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

See similar textbooks

Similar questions

1. Jack is considering selling his elliptical machine, which he never really used, is high quality, and has been taking up space in his spare bedroom. He lists it on Facebook Marketplace for "$1,200 or best offer" but in reality won't sell it for less than $1,000. Lina is looking to purchase a used elliptical machine. For a high-quality elliptical, she is willing to pay up to $1,300, and for a low-quality elliptical, she is willing to pay $600. Lina is risk neutral but she cannot tell if the elliptical machine is high quality or low quality. If she believes that 60% of used elliptical machines are high quality and 40% are low quality, what is the maximum price that Lina would be willing to pay? Would Jack agree to this price?
Suppose Carlos is the only seller in the market for bottled water and Van is the only buyer. The following lists show the value Van places on a bottle of water and the cost Carlos incurs to produce each bottle of water: Van's Value Value of first bottle: $9 Value of second bottle: $7 Value of third bottle: $4 Value of fourth bottle: $1 Carlos's Costs Cost of first bottle: $1 Cost of second bottle: $4 Cost of third bottle: $7 Cost of fourth bottle: $9 The following table shows their respective supply and demand schedules: Price Quantity Supplied Quantity Demanded More than $9 4 0 $7 to $9 3 1 $4 to $7 2 2 $1 to $4 1 3 $1 or less 0 4 Use Carlos's supply schedule and Van's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8. Enter these values in the following table. Price Quantity Supplied Quantity Demanded 2 5 8 A price…
Please see below. Need this asap. Please and thank you.
The Chicago Bears offer what are essentially two products: preseason and regular season football games. They play 2 preseason and 8 regular season home games. Suppose that Fred is a serious football fan. He values the preseason games at $140 each and the regular season games at $220 each. Joe is a more casual fan. He values the preseason games at $170 each and the regular season games at $180 each. Suppose that Fred and Joe are the only fans. If the Bears sell the tickets separately, the price of a ticket to a preseason game will be $ 140 The price of a ticket to a regular season game will be $ 180 Total revenue that the Chicago Bears collect will be $ 3440 If the Bears bundle tickets for the two preseason and eight regular season games together, the price the team will set for the bundle is S. Total revenue that the Chicago Bears collect will be S Should the Bears' managers sell the tickets separately or as a bundle? O A. The Bears should sell the tickets separately because they earn…
38. On January 7, Scott sends a letter to Aaron offering to sell his Xbox video game system for $50. On January 10, Aaron mails a letter of acceptance. On January 11, prior to receiving Aaron's letter, Scott faxes a letter to Aaron revoking his offer to sell his Xbox. As to the letters sent by Scott and Aaron: Aaron's letter is merely a counter-offer and Scott has the power to revoke. b. a. Scott's revocation is valid, no contract exists. Aaron's acceptance is effective upon dispatch and a valid contract exists. no contract because this contract must be in writing. C. "P
Bill is a professional photographer. His camera is broken, and he needs a new one within the next hour, orhe will miss an important deadline. Lisa is a highschool student who doesn’t have a camera but wantsto get one to take pictures at her prom next month.Who do you think would have a higher willingnessto pay for a particular camera today? Why?
You are shopping for new clothes and you like the style of a shirt. The store clerk tells you they have that shirt in red, blue, orange, and purple, and can offer it in the sizes small, medium, and extra large. How many different shirt options can this store offer?
Matthew grows wheat on his farm. One of his fields produced 66.8 bushels of wheat this year. If wheat is currently selling for $5.40 per bushel, how much will Matthew earn from this field?
As we learned in the video, Sheldon is trying to decide between purchasing an XBox and purchasing a PlayStation. Each system has its pros and cons. Sheldon is willing to pay up to $300 for the XBox, which costs $249. He is willing to pay up to $500 for the PlayStation, which costs $499. Regardless of which game system he buys, Sheldon plans to purchase a third-party warranty for $20. Let's calculate Sheldon's opportunity cost of purchasing each system. V 3rd attempt Part 1 What is Sheldon's opportunity cost if he buys the XBox? $ Part 2 What is Sheldon's opportunity cost if he buys the PlayStation? $ See Hint See Hint
Need asap. Please and thank you.
Vanessa Denai owned forty acres of land in rural Louisiana. On the property were a 1,600-square-foot house and a metal barn. Denai met Lance Finney, who had been seeking a small plot of rural property to rent. After several meetings, Denai invited Finney to live on a corner of her land in exchange for Finney’s assistance in cutting wood and tending her property. Denai agreed to store Finney’s sailboat in her barn. With Denai’s consent, Finney constructed a concrete and oak foundation on Denai’s property and purchased a 190-square-foot dome from Dome Baja for $3,395. The dome was shipped by Doty Express, a transportation company licensed to serve the public. When it arrived, Finney installed the dome frame and fabric exterior so that the dome was detachable from the foundation. A year after Finney installed the dome, Denai wrote Finney a note stating, “I’ve decided to give you four acres of land surrounding your dome as drawn on this map.” This gift violated no local land-use…
3.15 Mandy is ordering a set of football tickets for the coming season. She plans to sell the tickets to make some money. There are two types of tickets: tickets for road games and tickets for home games. For each road game ticket, she could make a profit of $150, and for each home game ticket, the profit is $50 on average. The ticket office offers two price options: (a) $5/home ticket, and no more than $50 purchase per person; $50/road ticket, and no more than $300 purchase per person. (b) $7.5/home ticket, and no more than S100 purchase per person; $45/road ticket, and no more than $250 purchase per person. How many tickets of each type should Mandy purchase so as to maximize the total profit she can make?