Consider the following production chain for bread. Assume that a Farmer grows wheat, and sells this to a Miller for $1.00. The Miller mills flour, and sells this to a Baker for $1.50. The Baker bakes bread, and sells this to a Supermarket for $3.00 per loaf. The Supermarket sells a loaf to a customer for $4.25. What is value added in the Miller's industry?

Consider the following production chain for bread. Assume that a Farmer grows wheat, and sells this to a Miller for $1.00. The Miller mills flour, and sells this to a Baker for $1.50. The Baker bakes bread, and sells this to a Supermarket for $3.00 per loaf. The Supermarket sells a loaf to a customer for $4.25. What is value added in the Miller's industry?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 19P

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