A farmer grows wheat and sells it to a miller for $1; the miller turns the wheat into flour and sells it to a baker for $3; the baker uses the flour to make bread and sells the bread for $6. The value added by the miller is:
A) $1.
B) $2.
C) $3.
D) $6.

Question

Quizplus · Accepted Answer

The value added by the miller is the difference between the sale price of the flour ($3) and the cost of the wheat ($1), which is $2.

A Farmer Grows Wheat and Sells It to a Miller