Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses.
Table 6-6

-Refer to Table 6-6. What is the valued-added by Crane Construction?
A) $725,000
B) $825,000
C) $950,000
D) $1,050,000

Question

Table 6-6 shows the different stages in the production of an office building. A mining firm extracts iron from the earth. A steel mill converts the iron to steel beams for use in construction. A construction company uses the steel beams to make a building. Assume that the total product of these firms represents the only components of the building and that they will have no other uses.
Table 6-6
 
-Refer to Table 6-6. What is the valued-added by Crane Construction?
A) $725,000 
B) $825,000 
C) $950,000 
D) $1,050,000

Quizplus · Accepted Answer

Crane Construction's value-added is $1,050,000 - $325,000 = $725,000.

Table 6-6 Shows the Different Stages in the Production of an Office