Question

A computer manufacturer sells laptops to retail stores for $450 each. If the manufacturer pays $200 for all of the components in each laptop and $75 in wages to it's workers, the value added to each computer by manufacturing is

Answer 1

$250

Step-by-step explanation:

Data provided in the question

Selling price of each laptop sells to the retail stores = $450

And, the manufactured paid for all components in each laptop is $200

So by considering the above information, the value added to each computer

= Selling price of each laptop sells to the retail stores - physical inputs cost

= $450 - $200

= $250

The wage to its workers is not a physical input. Hence, ignored it

Answer 2

Value Added = $ 175

Step-by-step explanation:

Value of Output is the final 'price x quantity' amount of goods or services produced.

Intermediate Consumption is the value of goods or services used to produce final goods or services

Value Added by Computer Manufacturer = Value of Output [Laptop Price] - Intermediate Consumption [Components cost & labour wages]

= 450 - 275

= $ 175