Table 8-5 Consider the Table Above Showing Three Stages of Stages

question 209

Multiple Choice

Table 8-5
Consider the table above showing three stages of production of an automobile.
-Refer to Table 8-5.The value added by the automobile dealer equals

• A)$7,000.
• B)$15,000.
• C)$18,000.
• D)$25,000.

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Definitions:

Total Cost

The cumulative amount of money spent or resources used in the production of goods or services, including fixed and variable costs.

Market Price

The existing price for buying or selling an asset or service in a particular market.

Profit

The financial gain realized when the revenue from business activities exceeds the costs and expenses associated with its operation.

Bales

Large bundles or packages of material, most commonly used in reference to agriculture commodities like hay or cotton.