How much does the household earn in profit from firms A and B combined?

/in /by

An economy has two firms.

An economy has two firms.

Question

An economy has two firms. Households own all of the labor services and all of the capital, which they rent out to the firms. Firm A produces sugar using labor services worth $10 and capital services worth $20. It sells $15 worth of sugar to households and $15 of sugar to firm B; a bakery. The bakery produces cakes worth $60 that it sells directly to households. Households earn $30 in wages from Firm A and B combined,

A. What is the value of GDP in this economy?

B. What is the value added by firm A?

c. What is the value added by firm B?

D. How much does the household earn in profit from firms A and B combined?

E. What is total value of intermediate goods and produced in the economy?

An economy has two firms.

 

PLACE THIS ORDER OR A SIMILAR ORDER WITH BEST NURSING TUTORS TODAY AND GET AN AMAZING DISCOUNT

get-your-custom-paper

The post  How much does the household earn in profit from firms A and B combined? appeared first on BEST NURSING TUTORS .

 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.