Table 6-6 Shows the Different Stages in the Production of an Office

question 54

Multiple Choice

Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses.
Table 6-6

-Refer to Table 6-6. What is the value added by Fuller Mill?

• A) $325,000
• B) $225,000
• C) $125,000
• D) $100,000

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