Suppose There Are Only Two Firms in an Economy: Cowhide,Inc

question 113

Multiple Choice

Suppose there are only two firms in an economy: Cowhide,Inc.produces leather and sells it to Couches,Inc. ,which produces and sells leather furniture.With each $1,000 worth of leather that it buys from Cowhide,Inc. ,Couches,Inc.produces a couch and sells it for $2,600.Neither firm had any inventory at the beginning of 2015.During that year,Cowhide produced enough leather for 25 couches.Couches,Inc.bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016.Couches,Inc.produced 20 couches during 2015 and sold each one during that year for $2,600.What was the economy's GDP for 2015?

• A)$25,000
• B)$52,000
• C)$57,000
• D)$65,000

Realize the potential of virtual reality (VR) in social media for storytelling, education, and marketing.

Identify the importance of ongoing engagement and participation in the social media industry.

Recognize the emerging trends in social media and their implications for future strategies.

Understand the basic principles of the marginal productivity theory of income distribution.

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Definitions:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Telecommunications Firm

A company that provides services in telecommunications, such as phone services, internet access, and cable TV.

Franchising

A method of doing business wherein a franchisor gives rights to a franchisee to operate a business or sell a product under the franchisor's brand in exchange for fees or royalties.

Contractual Agreement

A legally binding agreement between two or more parties that outlines the terms and conditions of a particular arrangement or transaction.