Question

Suppose that furniture production encompasses the following stages Stage 1: Trees are sold to lumber company Stage 2: Lumber is sold to furniture company. Stage 3: Furniture company sells furniture to retail store. Stage 4: Furniture store sells furniture to consumer Instructions: Enter your responses rounded to the nearest whole number a. What is the value added at each stage? $1,800 $4,000 $8,200 $12,500 Stage 1: $□ ] Stage 2: $L Stage 3: $ Stage 4 $ b How much does this output contribute to GDP? s I ot 9ΞΕΕ Scote.arswe SAMSUNG

Answer 1

The difference of values in each stage would be the value added of that stage.

Stage 1: value added = $1,800 (Answer)

Stage 2: value added = 4,000 – 1,800

                                    = $2,200 (Answer)

Stage 3: value added = 8,200 – 4,000

                                    = $4,200 (Answer)

Stage 4: value added = 12,500 – 8,200

                                    = $4,300 (Answer)