In Lumberville,the Lumberjack Cuts Trees and Sells Them to the Local

question 13

Multiple Choice

In Lumberville,the lumberjack cuts trees and sells them to the local mill for $500.The local mill processes these trees into wood planks and sells them to the carpenter for $800.Finally,the carpenter uses these wood planks to make tables which he sells for $1400 to Lumberville's residents.If we allowed double counting,the total value of Lumberville's output would be calculated as ________.But if we correctly compute the total value added,the value of the total output in Lumberville would be ________.

• A)$1400; $1400
• B)$2200; $2700
• C)$2200; $4200
• D)$2700; $1400
• E)$4200; $2700

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Definitions:

Traditional View

A conventional or long-established perspective on a topic, often compared to more modern or innovative approaches.

Full Cost

The total cost of a product or service, including all direct and indirect expenses.

Waiting Line Terminology

The set of terms and concepts used to describe and analyze the characteristics and behavior of waiting lines or queues in various contexts.

Costs Vary

An expression indicating that expenses can change based on factors such as production volume, time, and market conditions.