A good goes through three stages of production. The value added at stage 1 is $3; the value added at stage 2 is $5; the value added at stage 3 is $2. What is the retail price of the good?
A) $2
B) $10
C) $20
D) Cannot be determined based on the information given.

Question

Quizplus · Accepted Answer

The retail price of the good is the sum of the value added at each stage of production, which is $3 + $5 + $2 = $10.

A Good Goes Through Three Stages of Production