Suppose a Jar of DeLux Popcorn That Is Ultimately Sold

question 128

Multiple Choice

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: $$\begin{array} { l c c } \text { Name of Company } & \text { Revenues } & \text { Cost of Purchased Inputs } \\\text { Fulton Family Farm } & \$ 0.50 & 0 \\\text { DeLux Popcorn Co. } & \$ 2.50 & \$ .50 \\\text { Friendly Groceries } & \$ 4.00 & \$ 2.50\end{array}$$ What is the value added of Friendly Groceries?

• A) $1.50
• B) $2.50
• C) $3.50
• D) $4.00

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