Consider a Firm Whose Final Output (And Sales)in a Particular

question 12

Essay

Consider a firm whose final output (and sales)in a particular year has a value of $1,200.To produce these goods,the firm used $500 worth of intermediate goods it had purchased in previous years plus $200 worth of newly-purchased intermediate goods.In the subsequent year,this same firm again sells $1,200 worth of final goods,but in this year has purchased $700 worth of intermediate goods,of which $100 is not used in current production but,rather,added to the firm's inventory.For each of these two years,calculate the value added by this firm.For each of these two years,calculate the contribution of this firm to the economy's GDP.

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Definitions:

Education and Communication

The use of training and effective communication strategies to inform, educate, and improve understanding among individuals or groups.

Resistance to Change

The reluctance or refusal to adapt to new methods, practices, or conditions, often due to fear, comfort with the status quo, or perceived threats.

7-day Rotation Schedule

A scheduling system in which employees or tasks rotate through a set pattern over a seven-day period, often used to cover continuous operations or services.

Work Specialization

The degree to which organizational tasks are subdivided into individual jobs; also known as division of labor.