A soft-drink bottling company supplies six-packs of orange flavored soda to retailers for a price of $2 each. If the components in each six-pack costs the bottling company $1.50, the value added, to each six-pack, by the bottling company is:
a. $2.00.
b. $1.50.
c. $1.25.
d. $1.00.
e. $0.50.
e
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As the economy enters an expansion so that people's expected future incomes rise, there will be
A) a decrease in the nominal interest rate. B) a leftward shift in the supply of loanable funds curve. C) an increase in the supply of loanable funds. D) a leftward shift in the demand for loanable funds curve. E) None of the above answers is correct.
Which one of the following is an example of a positive statement?
A) Farmers need some type of government aid. B) State governments should provide economic assistance to farmers. C) The federal government should provide economic assistance to farmers. D) The amount of financial assistance given to farmers is higher this year than it was 10 years ago.
In the shortrun (specificfactors) model, foreign direct investment is expected to cause a(n) ________ in the production of the capitalintensive good and a(n) ________ in the production of the landintensive good in the receiving country
a. decrease; decrease b. increase; decrease c. decrease; increase d. increase; increase
If a bottle of soda and bottled juice are substitutes, when the price of soda rises
A) demand for bottled juice rises. B) demand for bottled juice falls. C) quantity of bottled juice demanded falls. D) quantity of bottled juice demanded rises.