Suppose a Particular Model of Smartphone Contains $150 Worth of Raw

question 42

Multiple Choice

Suppose a particular model of smartphone contains $150 worth of raw materials and requires $175 worth of labor to produce.One day,one of these phones sells for $400.The seller would have been willing to sell it for as little as $375,whereas the buyer would have been willing to pay as much as $425.Which dollar amount would be used to calculate this transaction's contribution to gross domestic product (GDP) ?

• A) $150
• B) $175
• C) $375
• D) $400
• E) $425

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Definitions:

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are subtracted.

Output Level

The amount of products or services generated by a company or economic system within a specified timeframe.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.