Question

A firm produces Rs. 100 worth of goods per year, Rs. 20 is the value of intermediate goods used by it during

the year and Rs 10 is the value of capital consumption . the net value will be :

(a) Rs. 100 (b) Rs. 80 (c) 70 (d) 130 ​

Answer 1

Answer: option c.] 70

Explanation: c.] 70 is the correct answer

Answer 2

Answer:

The net value of the firm's production is Rs. 70, which is option (c).

Explanation:

The net value of a firm's production is calculated by subtracting the value of intermediate goods and capital consumption from the total value of goods produced. In this scenario, the firm produces Rs. 100 worth of goods per year, Rs. 20 is the value of intermediate goods used, and Rs. 10 is the value of capital consumption.

Therefore, the net value of the firm's production would be:

Net Value = Total Value - Value of Intermediate Goods - Value of Capital Consumption

Net Value = Rs. 100 - Rs. 20 - Rs. 10

Net Value = Rs. 70

Therefore, the net value of the firm's production is Rs. 70, which is option (c). This means that the firm's total production value is reduced by the cost of intermediate goods used and capital consumption to arrive at the net value.

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