A sheep herder raises sheep for their wool. A textile mill converts the wool to cloth for use in clothing. clothing company uses the wool cloth to make a sweater. Assume that the total product of these firms represents the only components of the sweater and that they will have no other uses. Use the following table to determine which of the following statements is true. Company Product Total Sales Value Added Sheep Land Ranch Wool $14.00 Bill's Mill Wool Cloth $33.00 Sweaters R Us Sweater $75.00 Total Value Added O Sweaters R Us added $75.00 of value to the production. O Bill's Mill has created $47.00 of value, O The total value added for the production of sweaters is $75.00. O Sheep Land Ranch has added $19.00 of value.

A sheep herder raises sheep for their wool. A textile mill converts the wool to cloth for use in clothing. clothing company uses the wool cloth to make a sweater. Assume that the total product of these firms represents the only components of the sweater and that they will have no other uses. Use the following table to determine which of the following statements is true. Company Product Total Sales Value Added Sheep Land Ranch Wool $14.00 Bill's Mill Wool Cloth $33.00 Sweaters R Us Sweater $75.00 Total Value Added O Sweaters R Us added $75.00 of value to the production. O Bill's Mill has created $47.00 of value, O The total value added for the production of sweaters is $75.00. O Sheep Land Ranch has added $19.00 of value.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 3E

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