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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text: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?
$500
$700
$800
$1,000
$3,000
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