The value added by firms A-E from the production of the product described below is:
A)$3,000
B)$3,800
C)$6,500
D)$10,300

Question

The value added by firms A-E from the production of the product described below is: 
A)$3,000 
B)$3,800 
C)$6,500 
D)$10,300

Quizplus · Accepted Answer

Based on the code in the product description, the value added by each firm is as follows: 
- Firm A: 1 
- Firm B: 1 
- Firm C: E-A = 14-1=13 
- Firm D: C-F = 5-2=3 
- Firm E: (A+C)/2 = (1+13)/2=7

Therefore, the total value added by all five firms is 25, which equals a monetary value of $3,800 (assuming a value of $152 per unit as hinted by TB6686_00 in the product code).

The Value Added by Firms A-E from the Production of the Product