In Shoetown, a rancher takes $0 worth of inputs and produces animal skins, which he sells to the tanner for $400. The tanner then sells leather to the shoemaker for $700, and the shoemaker then sells $1200 worth of shoes. The value added from these transactions is
A) $ 800.
B) $2300.
C) $2500.
D) $1200.
E) $1000.
Correct Answer:
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