Firm A produces 1,000 units of output at a cost of $20 each. Firm A sells...

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Firm A produces 1,000 units of output at a cost of $20 each. Firm A sells all 1,000 units of output to Firm B at a price of $

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Answer 1

Answer #1

GDP is the market value of final goods and services. Firm B sold 90 units of final goods to consumers at $600 each which means GDP is 90 * $600 = $54,000. Inventories are not included in GDP.

Thus value of GDP is $54,000

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Answer 2

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