How does this impact GDP? A cell phone manufacturer made 300 cell phones in year 1 and sold 200 of themin year 1 and 100 of them in year 2. The cell phones are valued at $200 each inthe market.

Answered: A cell phone manufacturer made 300 cell…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How does this impact GDP?

A cell phone manufacturer made 300 cell phones in year 1 and sold 200 of them
in year 1 and 100 of them in year 2. The cell phones are valued at $200 each in
the market.

Expert Solution

Step 1

In the event that organizations can improve the productivity of the factors of production, it makes sense that they can make more merchandise at a higher caliber and maybe a lower cost. An increment in production prompts economic development as estimated by Gross Domestic Product or GDP. It is only a metric that addresses the absolute production, all things considered, and benefits in an economy. Improved economic development increases the expectation of living by bringing down expenses and raising wages.

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