MNLogs harvested logs (with no inputs from other companies) from their property in northern Minnesota. They sold these logs to MNLumber for $1,000 and MNLumber cut and planed the logs into lumber. MNLumber then sold the lumber for $2,500to MNFurniture. MNFurniture used the lumber to produce 100 tables that they sold to customers for $60 each.Instructions: Enter your responses as whole numbers.a. Complete the table below to calculate the value added by each firm. CompanyRevenuesCost of purchased inputsValue addedMNLogs$ $ $ MNLumber$ $ $ MNFurniture$ $ $ b.Suppose that all of these transactions took place in 2016. By how much did GDP increase because of these transactions?$ c.Suppose that MNLogs harvested the logs in October 2016 and sold them to MNLumber in December 2016. MNLumber then sold the finished lumber to MNFurniture in April 2017 and MNFurniture sold all 100 tables during the rest of 2017. By how much did GDP increase in 2016 and 2017 because of these transactions?GDP increase in 2016: $ GDP increase in 2017: $

a. Company Revenues cost of purchasing inputs value added MNLogs $1000 $0 $1000 MNLumber…

Answered: MNLogs harvested logs (with no inputs…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

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MNLogs harvested logs (with no inputs from other companies) from their property in northern Minnesota. They sold these logs to MNLumber for $1,000 and MNLumber cut and planed the logs into lumber. MNLumber then sold the lumber for $2,500to MNFurniture. MNFurniture used the lumber to produce 100 tables that they sold to customers for $60 each.

Instructions: Enter your responses as whole numbers.

a. Complete the table below to calculate the value added by each firm.

Company	Revenues	Cost of purchased inputs	Value added
MNLogs	$	$	$
MNLumber	$	$	$
MNFurniture	$	$	$

b.Suppose that all of these transactions took place in 2016. By how much did GDP increase because of these transactions?

$

c.Suppose that MNLogs harvested the logs in October 2016 and sold them to MNLumber in December 2016. MNLumber then sold the finished lumber to MNFurniture in April 2017 and MNFurniture sold all 100 tables during the rest of 2017. By how much did GDP increase in 2016 and 2017 because of these transactions?

GDP increase in 2016: $

GDP increase in 2017: $

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