The following table shows the results of operations of a dishwasher manufacturer in 2021.Price per dishwasher sold in 2021$1,000Total Number of dishwashers produced in 2021 9,000Total number of dishwashers sold in 2021 8,000Number of dishwashers sold in 2021 produced in 2020 2,000Costs of parts and components used in production $2,000,000Wages paid in 2021 $4,500,000Rent and interest paid in 2021 $500,000National income accountants will include dollars from the above table in the 2021 GDP. However, the manufacturer's value added in 2021 to the GDP only equals dollars. This is how much this producer's 2021 activities contributes to total GDP in 2021. From the viewpoint of national income accountants, this producer's profit resulting from 2021 production activities

Value-added describes the additional contribution a company or manufacturer makes to the overall…

Answered: The following table shows the results…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter14: Limiting Market Power: Antitrust And Regulation

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Related questions

Question

The following table shows the results of operations of a dishwasher manufacturer in 2021.

Price per dishwasher sold in 2021	$1,000
Total Number of dishwashers produced in 2021	9,000
Total number of dishwashers sold in 2021	8,000
Number of dishwashers sold in 2021 produced in 2020	2,000
Costs of parts and components used in production	$2,000,000
Wages paid in 2021	$4,500,000
Rent and interest paid in 2021	$500,000

National income accountants will include dollars from the above table in the 2021 GDP. However, the manufacturer's value added in 2021 to the GDP only equals dollars. This is how much this producer's 2021 activities contributes to total GDP in 2021. From the viewpoint of national income accountants, this producer's profit resulting from 2021 production activities

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.