Question

CANOESminus−Rminus−US makes canoes. It buys the shell of the canoe from another local firm for​ $300 and uses its labor and intermediate goods to make the canoe. It sells the finished canoe to a retail canoe store for​ $800. The retail canoe store then sells the canoe to a consumer for​ $1,200. The value added of CANOESminus−Rminus−US for each canoe equals

Answer 1

Answer:

$500

Explanation:

Given that

The buying value of the canoe shell = $300

Sale value of the finished goods for making the canoe = $800

And the final price to the customer = $1,200

S, each canoe equal to

= Sale value of the finished goods for making the canoe - Buying value of the canoe shell

= $800 - $300

= $500

Hence, the final price is ignored.