A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required costs of $300 worth of labor and $200 to rent a factory and pay for maintenance. All of the peanut butter was sold, generating $3,000 worth of revenue. What was the firm's value added from these actions?

A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required costs of $300 worth of labor and $200 to rent a factory and pay for maintenance. All of the peanut butter was sold, generating $3,000 worth of revenue. What was the firm's value added from these actions?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 2P

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