Use the following data for an ice-cream vendor at a local fair: $$\begin{array} { | l | r | }
\hline \text { Reverue: } & \$ 1,800 \
\hline \text { Costs: } & \
\hline \text { Wages and salaries } & \$ 350 \
\hline \text { Concession stand fee } & \$ 300 \
\hline \text { Rental fee for truck } & \$ 100 \
\hline \text { Ice cream } & \$ 850 \
\hline
\end{array}$$ (A) Calculate the vencar's value anded.
(B) Profits are revenue minus costs. Cepital income cansists of prafits, rents, and interest. Show that the value added equuls capital income plus labor income paid by the vendar.
(C) Suppose that at a similar fair, the temperature is codler and revenues fall to 1,500 , but the prices of intermepliate inputs, rental fees, and wages and saleries ta not change. What happens to value added and profits in this case?

Question

Use the following data for an ice-cream vendor at a local fair: $$\begin{array} { | l | r | } 
\hline \text { Reverue: } & \$ 1,800 \
\hline \text { Costs: } & \
\hline \text { Wages and salaries } & \$ 350 \
\hline \text { Concession stand fee } & \$ 300 \
\hline \text { Rental fee for truck } & \$ 100 \
\hline \text { Ice cream } & \$ 850 \
\hline
\end{array}$$ (A) Calculate the vencar's value anded.
(B) Profits are revenue minus costs. Cepital income cansists of prafits, rents, and interest. Show that the value added equuls capital income plus labor income paid by the vendar.
(C) Suppose that at a similar fair, the temperature is codler and revenues fall to 1,500 , but the prices of intermepliate inputs, rental fees, and wages and saleries ta not change. What happens to value added and profits in this case?

Quizplus · Accepted Answer

The Answer of Use the following data for an ice-cream vendor at a local fair: $$\begin{array} { | l | r | } 
\hline \text { Reverue: } & \$ 1,800 \
\hline \text { Costs: } & \
\hline \text { Wages and salaries } & \$ 350 \
\hline \text { Concession stand fee } & \$ 300 \
\hline \text { Rental fee for truck } & \$ 100 \
\hline \text { Ice cream } & \$ 850 \
\hline
\end{array}$$ (A) Calculate the vencar's value anded.
(B) Profits are revenue minus costs. Cepital income cansists of prafits, rents, and interest. Show that the value added equuls capital income plus labor income paid by the vendar.
(C) Suppose that at a similar fair, the temperature is codler and revenues fall to 1,500 , but the prices of intermepliate inputs, rental fees, and wages and saleries ta not change. What happens to value added and profits in this case?

Use the Following Data for an Ice-Cream Vendor at a Local