Assume the production of a good involves four stages of production. If the final retail price of this good is $20, it must be the case that summing the "value added" for all stages of production will equal:
a. $4
b. $5
c. $80
d. $20
GDP is the sum of value added at each stage of production.
If production of goods involves four stages of production and the final retail price of this good is $20, it means the GDP is $20.
And it must be the case that summing the value added for all stages of production will equal to $20.
Answer: option (d).
Assume the production of a good involves four stages of production. If the final retail price...
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