Question

A business buys $5000 worth of resources to produce a good. The business makes 100 units of the good and each of them sells for $65. The value added by the business to these products is:

a. $5,000
b. $6,500
c. $1,500
d. $1,000

Answer 1

$1,500

Step-by-step explanation:

A business buys $5000 worth of resources resources to produce a good

The business makes 100 unit of of the good and sell each for $65

Therefore the value added by the business to the product can be calculated as follows

= $65×100

= $6500

$6,500-$5,000

= $1,500

Hence the value added by the business to the product is $1,500