If Dell Buys a Computer from a Foreign Producer for $500

question 26

Multiple Choice

If Dell buys a computer from a foreign producer for $500 and sells it to Best Buy for $800,who then sells it to a consumer for $1,200,what is Dell's value added,Best Buy's value added,and the computer's contribution to GDP?

• A) $300, $400, and $1,200
• B) $300, $700, and $1,000
• C) $300, $400, and $700
• D) $800, $1,200, and $400

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Definitions:

Demand Constraint

A demand constraint is a limitation that affects the quantity of a product that can be sold or demanded in the market, potentially due to factors like production capacity or regulatory issues.

Distribution Center

A specialized facility that enables the storage, handling, and distribution of goods to retailers or directly to customers.

San Antonio

A major city in south-central Texas with a rich colonial heritage, known for the Alamo and the River Walk.

Television Sets

Electronic devices designed to receive television signals for visual and auditory display of content.