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 1,337 liters of ink monthly, Y produces 56,967 pens monthly, and Z produces 20 metric tons of paper monthly. X sells all of the ink it produces to Y at a market price of $330 per liter. Y sells 43,494 pens at a market price of $0.97 per pen and stores the rest as inventory. Z sells all of its paper at the market price of $834 per metric ton The annual market value of production in this economy is $ (Round your answer to two decimal places.)
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 1,337 liters of ink monthly, Y produces 56,967 pens monthly, and Z produces 20 metric tons of paper monthly. X sells all of the ink it produces to Y at a market price of $330 per liter. Y sells 43,494 pens at a market price of $0.97 per pen and stores the rest as inventory. Z sells all of its paper at the market price of $834 per metric ton The annual market value of production in this economy is $ (Round your answer to two decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What is the annual market value of production in this economy?
Transcribed Image Text: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 1,337 liters of ink monthly, Y produces 56,967 pens monthly, and Z produces 20 metric tons of paper monthly. X sells all of the ink it produces to Y at a market
price of $330 per liter. Y sells 43,494 pens at a market price of $0.97 per pen and stores the rest as inventory. Z sells all of its paper at the market price of $834 per
metric ton
The annual market value of production in this economy is $
(Round your answer to two decimal places.)
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