Suppose There Are Only Two Firms in an Economy: Rolling

Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Chewy Chomp,Inc. ,which uses the rawhide to produce and sell dog chews.With each $2 of rawhide that it buys from Rolling Rawhide,Chewy Chomp,Inc.produces a dog chew and sells it for $5.Neither firm had any inventory at the beginning of 2007.During that year,Rolling Rawhide produced enough rawhide for 1000 dog chews.Chewy Chomp,Inc.bought 75% of that rawhide for $1500 and promised to buy the remaining 25% for $500 in 2008.Chewy Chomp,Inc.produced 750 dog chews during 2007 and sold each one during that year for $5.What was the economy's GDP for 2007?

A) $3750
B) $4250
C) $5250
D) $5750