Total price of the goods that the business is selling to the consumer = 100 x 65 = $6500. price of the raw material that the business has brought in = $5000.
Total value addition = $6500 - 5000 = $1500.
The answer is "C".
35. A business buys $5,000 worth of resources to produce a product. The business makes 100...
Arthur buys $1,500 worth of stock. Six months later, the value of the stock has risen to $1,700 and Arthur buys another $1,000 worth of stock. After another eight months, Arthur's holdings are worth $2,300 and he sells off $800 of them. Ten months later, Arthur finds that his stock has a value of $1,600. (a) Compute the annual time-weighted yield rate of the stock over the two-year period. (Round your answer to two decimal places.) (b) Compute the annual...
A firm uses 100 hours of labor and 20 units of capital to produce 5,000 bicycles a day. Labor’s marginal product is 4 bicycles per day and the marginal product of capital is 10 bicycles per day. Each unit of labor costs $20 and each unit of capital costs $40 per hour. If the firm wants to continue producing 5,000 bicycles per day at the lowest possible cost, it should A. Continue using 100 hours of labor and 20 units...
A firm has 65% probability of being worth $100 million and a 35% probability of being worth $130 million. There is one bond outstanding that promises to pay $100 million at an interest rate of 7%. The cost of capital for the firmʹs projects is 9%. What is the promised return on the bond? a)7.0% b) Not determinable c) 10.8% d) 6.4%
1) Mexico uses $200 worth of imported parts and $100 worth of imported wood to produce a TV set whose world price is $600 a. What is the value added of the Mexican TV industry ? l Suppose that Mexico imposes a 20% ad valoreim tariff on imports of TV. What happens to the value added of Mexico's TV industry ? What is the effective rate of protection ? Suppose that in addition to the tariff on imports of TV...
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Multiple Choice Questions 1. A company makes and sells product A and B. Twice as many units of product B are made and sold as that of product A. Each unit of product A makes a contribution of $10 and each unit of product B makes a contribution of $4. Fixed costs are $90,000. What is the total number of units which must be made and sold to make a profit of $45,000? A B C D 7500 22,500 15,000...
Multiple Choice Questions A company makes and sells product A and B. Twice as many units of product B are made and sold as that of product A. Each unit of product A makes a contribution of $10 and each unit of product B makes a contribution of $4. Fixed costs are $90,000. What is the total number of units which must be made and sold to make a profit of $45,000? A 7500 B 22,500 C 15,000 D 16875...