Suppose there are three firms in the economy: A, B and C. Estimate the GDP by...

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Question

Suppose there are three firms in the economy: A, B and C. Estimate the GDP by...

Suppose there are three firms in the economy: A, B and C. Estimate the GDP by the Gross Value Added method:

Value Added by Firm A: $300

Value Added by Firm B: $250

Value Added by Firm C: $150

business economics

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Answer 1

Answer #1

GDP is the sum of value addition of all the firm A,B and C at all stage of level of production

GDP=300+250+150=700

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Answer 2

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