Discuss what value added at each step of production process


Problem

A mechanic builds an engine and then sells it to a customized body shop for $7,000. The body shop installs the engine in the car and resells it to a dealer for $20,000. The dealer then sells the finished vehicle for $35,000. A consumer drives off with the car. By how much does GDP increase? What is the value added at each step of the production process? How does the total value added compare with the amount by which GDP increased?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Discuss what value added at each step of production process
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