1. The farmer produces 115 pounds of oranges at a total cost of $1.38 per pound.   He sells all of the oranges to Firm F for $1.71 per pound. Firm F produces 60 gallons of orange juice at a  total cost of $3.81 per gallon (including the amount paid to the farmer for the oranges).  Firm F sells 55 gallons of juice to consumers for $5.71 per gallon There are no other firms in this simple economy. What is the value added by Firm F? Enter a whole number with no dollar sign.   2. A farmer grows wheat and sells it to the miller for $1.25. The miller turns the wheat into flour and sells it to the baker for $2.00. The baker turns the flour into bread and sells it to consumers for $3.80. What is the value added by the baker? Group of answer choices $3.80 $7.05 $1.80 $0.55

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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1. The farmer produces 115 pounds of oranges at a total cost of $1.38 per pound.   He sells all of the oranges to Firm F for $1.71 per pound.

Firm F produces 60 gallons of orange juice at a  total cost of $3.81 per gallon (including the amount paid to the farmer for the oranges).  Firm F sells 55 gallons of juice to consumers for $5.71 per gallon

There are no other firms in this simple economy.

What is the value added by Firm F?

Enter a whole number with no dollar sign.

 

2. A farmer grows wheat and sells it to the miller for $1.25. The miller turns the wheat into flour and sells it to the baker for $2.00. The baker turns the flour into bread and sells it to consumers for $3.80. What is the value added by the baker?

Group of answer choices

$3.80

$7.05

$1.80

$0.55

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