CL2 ECO 3203

# CL2 ECO 3203 - Firm B sold all 40 units to consumers for a...

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Classwork #2 Firm A produces 100 units of output at a cost of \$10 each. Firm A sells 40 units of output to consumers at a price of \$12 each, 40 units of output to Firm B at a price of \$11 each, and does not sell the remaining 20 units in this time period. Firm B produces 40 units of output using the 40 units of output that it purchased from Firm A. The total cost of producing the 40 units was \$900.
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Unformatted text preview: Firm B sold all 40 units to consumers for a total of \$1200. What is the value of consumption? What is the value of investment? What is the value added by Firm A? What is the value added by Firm B? Suppose there are only two types of income in this economy, wage income and profit income. What is the total value of the wage income and the total value of the profit for this simple economy?...
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