Acme Steel Co produces 1000 tons of steel Steel sells for 30

Acme Steel Co. produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. What is Acme\'s contribution to GDP? What are Acme\'s profits?

Solution

Contribution to GDP = $15000.

Acme\'s profits = $3000 (i.e. 30000 - 10000 - 15000 - 2000)

Acme Steel Co. produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce

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