Assume That a Firm Buys All the Parts That It

Multiple Choice

Assume that a firm buys all the parts that it puts into an automobile for $10,000, pays its workers $10,000 to fabricate the automobile, and sells the automobile for $22,000. In this case, the value added by the automobile company is:

A) $10,000.
B) $12,000.
C) $20,000.
D) $22,000.