Question

Intelligence Incorporated produces 300 computer chips and sells them for $200 each to Bell Computers. Using the chips and other labor and materials, Bell produces 300 personal computers. Bell sells the computers, bundled with software that Bell licenses from Macrosoft at $50 per computer, to PC Charlie's for $800 each. PC Charlie's sells the computers to the public for $1,000 each. Calculate the total contribution to GDP using the value-added method. Instructions: Enter your responses as whole numbers. Company Revenues Cost of purchased inputs Value added Intelligence Inc. $ $ Macrosoft 5 $ $ Bell $ $ PC Charlie's $ $ $ GDP by the value-added method is: $ Do you get the same answer by summing up the market values of final goods and services? (Click to select) Calculate GDP by summing the market values of final goods: $

Answer 1

Ans Q Revenue Q Price Cost Company Intelligence Inc Price 200 300 60,000 Value Added 60,000 REvenue Bell 300 800 240,000 300 300 200 50 60,000 Cost of Computer chips 15,000 Cost of Licence 165,000 REvenue-cost of chips and License Macrosoft 300 50 15,000 15,000 Cost of license PC Charlies 300 1,000 300,000 300 800 240,000 60,000 REvenue-cost of computers GDP by value added Method 300,000 GDP by Final sale price by PC Charlie 300,000 Both nos are same