Consider a small country with only three producers, X, Y, and Z, who produce ink, pen, and paper, respectively. Y uses ink (output of X) in its production of pens. X produces 1,457 liters of ink monthly, Y produces 57,291 pens monthly, and Z produces 14 metric tons of paper monthly. X sells all of the ink it produces to Y at a market price of $338 per liter. Y sells 43,385 pens at a market price of $0.59 per pen and stores the rest as inventory. Z sells all of its paper at the market price of $781 per metric ton. The annual market value of production in this economy is $__?
Consider a small country with only three producers, X, Y, and Z, who produce ink, pen, and paper, respectively. Y uses ink (output of X) in its production of pens. X produces 1,457 liters of ink monthly, Y produces 57,291 pens monthly, and Z produces 14 metric tons of paper monthly. X sells all of the ink it produces to Y at a market price of $338 per liter. Y sells 43,385 pens at a market price of $0.59 per pen and stores the rest as inventory. Z sells all of its paper at the market price of $781 per metric ton. The annual market value of production in this economy is $__?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a small country with only three producers, X, Y, and Z, who produce ink, pen, and paper, respectively. Y uses ink (output of X) in its production of pens. X produces
1,457 liters of ink monthly, Y produces
57,291 pens monthly, and Z produces 14 metric tons of paper monthly. X sells all of the ink it produces to Y at a market price of
$338 per liter. Y sells 43,385 pens at a market price of $0.59 per pen and stores the rest as inventory. Z sells all of its paper at the market price of
$781 per metric ton.
The annual market value of production in this economy is
$__?
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