Answer:
Explanation:
1. What is the total payments (income) to factors of Better-bald Inc.?
Payments to factors of Better-bald Inc. = Rent+Wages+Interest payment+Profits = 450+300+100+750 = $1600
2. What is the total payments (income) to factors of Sweeter Sweaters Inc.?
Payments to factors of Sweeter Sweater Inc = Rent+Wages+Interest payment+Profits = 500+550+50+800 = $1900
3. If we use income method to calculate GDP, we need to sum the payment to factor of production by the entreprises in the economy who employ the factor of production.
The given economy has three enterprises: Better-bald, Sweater Sweaters, Sheepnip. Payment to factor of production are already calculated for 2 of them. Therefore, we there is a need to calculate for the Sheeping Co.
Payment to factors by Sheeping Co = 700 + 400 + 1000 + 100 = $2200
So GDP = $1600 + $1900 + $2200 = $5700
1. The total payments (income) to factors of Better-bald Inc is $1600.
2. The total payments (income) to factors of Sweeter Sweaters Inc is $1900.
3. The GDP for this economy is $5700.
1. Total payments (income):
Total payments= Rent+Wages+Interest payment+Profits
Total payments=$450+$300+$100+$750
Total payments= $1600
2. Total payments (income):
Total payments = Rent+Wages+Interest payment+Profits
Total payments=$500+$550+$50+$800
Total payments= $1900
3. GDP:
GDP=$1600+$1900+($700 + $400 + $1000 + $100)
GDP = $1600 + $1900 + $2200
GDP = $5700
Inconclusion the total payments (income) to factors of Better-bald Inc is $1600, the total payments (income) to factors of Sweeter Sweaters Inc is $1900 and the GDP for this economy is $5700.
Learn more about total payment here:https://brainly.com/question/25898631
