How much value added is produced at acme us

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Reference no: EM13203073

Here once again is the basic data on revenue and costs for each firm when Acme U.S. makes and sells a car.

The table shows the initial price that Acme U.S. pays Acme Mexico, $3,000 per engine. In some problems, you will be asked to consider how things change if it increases this price to $3,500 per engine.

Acme U.S. U.S. Hydroelectric Acme Mexico

Revenue $15,000 $500 $3,000
Payments to workers $10,500 ? $2,200
Purchased inputs $0 $0
Engines $3,000
Electricity $500

Recall that value added for a firm is revenue minus payments for such purchased inputs as electricity and parts. Using the data in the table, how much value added is produced at Acme U.S. for each car that it makes?

Reference no: EM13203073

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