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Homework answers / question archive / QUESTION 2 An Australian car manufacturer buys components from Japan for $10,000
QUESTION 2 An Australian car manufacturer buys components from Japan for $10,000. The car manufacturer uses half of those components in the production of a car, and stores the rest of the components. The car is sold to a local resident for $20,000. Then: The value added of the car manufacturer increases by $15,000 and its profits increase by $15,000. The value added of the car manufacturer increases by $10,000 and its profits increase by $10,000. The value added of the car manufacturer increases by $15,000 and its profits increase by $10,000. The value added of the car manufacturer increases by $20,000 and its profits increase by $15,000.
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