If a Firm Bakes Cookies and Sells Them for $1,000

question 102

Multiple Choice

If a firm bakes cookies and sells them for $1,000 while spending $100 on sugar,$150 on chocolate,$50 on other supplies,$300 on wages and $400 on rent,what is its value added?

• A) $300
• B) $0
• C) $700
• D) $200
• E) $400

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Definitions:

Deregulation

The reduction or elimination of government power in a particular industry, usually with the aim of increasing competition and efficiency.

Industry Experts

Individuals with extensive knowledge and experience in a specific industry, often sought after for their insights and advice.

Government Subsidies

Financial assistance provided by the government to individuals, organizations, or industries to support economic activities deemed beneficial for the public.

Regulatory Capture

A situation where regulatory agencies are dominated by the industries they are charged with regulating, often leading to a favoring of industry interests over the public.