Question
An economy has four firms: Firm A, a mining enterprise, extracts iron ore; Firm B, a steelmaker, uses iron to make steel sheets and ingots;
An economy has four firms:
Firm A, a mining enterprise, extracts iron ore;
Firm B, a steelmaker, uses iron to make steel sheets and ingots;
Firm C, a carmaker, makes automobiles using steel;
Firm D, a manufacturer of machinery and robots, also uses steel.
(i) Calculate the production, intermediate consumption and values added in millions of dollars based on the following assumptions.
Firm A extracts 50 000 tonnes of ore, at 200 dollars per tonne, its purchases during the period limited to the purchase of one machine made by firm D, costing 10 million dollars. Firm B produces 15 000 tonnes of steel sheet at 3000 dollars per tonne, having bought and used all the ore produced by firm A. Firm C has manufactured 5000 vehicles and sold them all to households for 15 000 dollars each, having purchased 20 million dollars worth of steel sheet from firm B, but using only 18 million dollars worth in the manufacture of its cars. In addition, Firm C imported 5000 engines from a foreign subsidiary, each being valued at 4000 dollars, and purchased domestically 2 robots made by firm D. Firm D sold one machine for 10 million dollars and two robots, each worth 5 million dollars, having used 10 million dollars worth of steel sheet from firm B.
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