Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: $$\begin{array} { l c c }
\text { Name of Company } & \text { Revenues } & \text { Cost of Purchased Inputs } \
\text { Fulton Family Farm } & \$ 0.50 & 0 \
\text { DeLux Popcorn Co. } & \$ 2.50 & \$ .50 \
\text { Friendly Groceries } & \$ 4.00 & \$ 2.50
\end{array}$$ What is the value added of Friendly Groceries?

Question

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: $$\begin{array} { l c c } 
\text { Name of Company } & \text { Revenues } & \text { Cost of Purchased Inputs } \
\text { Fulton Family Farm } & \$ 0.50 & 0 \
\text { DeLux Popcorn Co. } & \$ 2.50 & \$ .50 \
\text { Friendly Groceries } & \$ 4.00 & \$ 2.50
\end{array}$$ What is the value added of Friendly Groceries?

Quizplus · Accepted Answer

The value added of Friendly Groceries is calculated as the difference between its revenues and the cost of purchased inputs: $4.00 - $2.50 = $1.50.

Suppose a Jar of DeLux Popcorn That Is Ultimately Sold