In Lumberville,the Lumberjack Cuts Trees and Sells Them to the Local

Multiple Choice

In Lumberville,the lumberjack cuts trees and sells them to the local mill for $500.The local mill processes these trees into wood planks and sells them to the carpenter for $800.Finally,the carpenter uses these wood planks to make tables which he sells for $1400 to Lumberville's residents.If we allowed double counting,the total value of Lumberville's output would be calculated as ________.But if we correctly compute the total value added,the value of the total output in Lumberville would be ________.

A) $1400; $1400
B) $2200; $2700
C) $2200; $4200
D) $2700; $1400
E) $4200; $2700