Please solve and explain !! Thank you #1) The value added by L.L. bean is a) 2 b

Question

Please solve and explain !! Thank you

#1) The value added by L.L. bean is

a) 2 b) 4 c) 14 d) None of the above

#2) The total value added

a) Cannot be calculated b) 18 c) 22 d) 36

The following table illustrates the value added approach to calculating GDP. Please complete the table Firm Value of Product Value Added Equals Value Added By: Cotton farmer Raw Cotton= $2 Textile mill Cotton woven into cotton fabric $4 Shirt company LLBean Shirt sold on LL Bean's website = The cotton farmer The textile mill The shirt company LL Bean Fabric made into a shirt = $16 12 $36 Total Value Added

Explanation / Answer

The value added by bean = 36(value of output)- 16(Intermediate) = 20 so the correct option The value added by L.L. bean is none of the above.

The total value added = 2+2+12+20 = $36 which also equals the value of final product. The correct option is D. 36

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