Question

In: Economics

In the first stage of manufacturing each final unit of a​ product, a firm purchases a...

In the first stage of manufacturing each final unit of a​ product, a firm purchases a key input at a price of ​$3 per unit. The firm then pays a wage rate of ​$5 for the time that labor is​ exerted, combining an additional ​$2 of inputs for each final unit of output produced. The firm sells every unit of the product for ​$12.

What is the contribution of each unit of output to GDP in the current​ year?

The contribution of each unit of output to GDP in the current year is?

Solutions

Expert Solution

Ans: The contribution of each unit of output to GDP in the current year is $12.

Explanation:

GDP is defined as the market value of all final goods and services produced in a nationat a particular time period, i.e., a year.

In the above question, since the firm sells every unit of the product for ​$12, it means contribution of each unit of output to GDP in the current year is $12.

Rahul Sunny answered 2 years ago
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