Suppose a US company produces 100 MRI machines, each of which sells for $5 million to hospitals. If only 90 of the machines is sold this year what is the value of this production in GDP? Assume all sales are domestic.
O Some amount between $450 million and $500 million because the unsold machines are counted as inventory investment at the cost of production, not the possible sales price.
O The machines that were sold show up as $450 million of gross domestic investment by the hospitals that buy the MRI machines.
O The full $500 million is counted as gross domestic investment.
O The machines that are sold are $450 million of investment by hospitals and those that are not sold are counted as gross private domestic investment in inventory by the firm that produced the machines.