I'm not sure if I just do 25,000-18,000 to get $7,000 as the value added or if I also have to consider the steel mill and do 18,000-10,000 to get 8,000 and then add that to the 7,000 and get $15,000. **Table 5: Stages of Production of an Automobile**The table below illustrates the sequential stages involved in the production and sale of an automobile, including the corresponding sellers, buyers, and prices at each stage.| **Stage of Production** | **Seller** | **Buyer** | **Price** ||-------------------------|---------------------|--------------------|-----------|| 1 | Steel mill | Auto manufacturer | $10,000 || 2 | Auto manufacturer | Auto dealer | $18,000 || 3 | Auto dealer | Consumer | $25,000 |**Analysis Question:**20) *Refer to Table 5.* The value added by the automobile dealer equals:A) $7,000 B) $15,000 C) $18,000 D) $25,000 Note: To determine the value added at each stage, subtract the purchase price from the selling price for that specific transaction.

Value added by the actual value added by a person in GDP. GDP is is gross domestic product. GDP…

Stage of Production 1 2 3 Table 5 B) $15,000. C) $18,000. D) $25,000. Seller Steel mill Auto manufacturer Auto dealer Buyer Auto manufacturer Auto dealer Consumer Consider the table above showing three stages of production of an automobile. 20) Refer to Table 5. The value added by the automobile dealer equals A) $7,000. Price $10,000 18,000 25,000

Stage of Production 1 2 3 Table 5 B) $15,000. C) $18,000. D) $25,000. Seller Steel mill Auto manufacturer Auto dealer Buyer Auto manufacturer Auto dealer Consumer Consider the table above showing three stages of production of an automobile. 20) Refer to Table 5. The value added by the automobile dealer equals A) $7,000. Price $10,000 18,000 25,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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